NVIDIA Corporation (NASDAQ:NVDA) ranks second on our list of stocks analysts are talking about amid the Trump tariff war. The company faces several challenges, including competition from major players like Apple, Qualcomm, and AMD, who are vying for TSMC’s 3nm capacity.
As a result, NVIDIA’s stock has been under pressure, with some analysts raising concerns over the company’s ability to meet growth expectations. Dan Niles, founder of Niles Investment Management, noted that NVIDIA’s $5.5 billion inventory write-down following US export restrictions shows that demand is not as strong as initially thought.
However, other analysts remain bullish on the stock, citing its leadership in AI and super-computing parallel processing techniques. Alger Spectra Fund stated that NVIDIA’s computational power is essential to AI adoption and that the company will continue to drive adoption among enterprises and startups.
Despite these positive sentiments, NVIDIA’s Q1 guidance shows a 9.4% QoQ revenue growth, down from the previous 12% QoQ growth. The market does not like it when the company fails to post a strong quarterly beat, and its adjusted margin is expected to be down substantially.
NVIDIA’s challenges go beyond competition, with some analysts warning of potential tariffs and operational costs increasing worries about higher costs. However, CEO Jensen Huang emphasized that future AI models could demand substantially more compute resources, suggesting that NVIDIA remains well-positioned to capitalize on rising computational needs across AI applications.
In conclusion, while NVIDIA’s stock has been under pressure amid tariff war uncertainty, analysts remain bullish on the company’s long-term prospects. As with any investment, it is essential to weigh the potential risks and rewards and consider alternative options.
Source: https://finance.yahoo.com/news/dan-niles-says-nvidia-nvda-204650745.html