NVIDIA (Nasdaq: NVDA)) The actions experienced a jerky journey in April, while the company is found in one of the main stars of Trump’s pricing reality TV show.
With each political turn in Washington, NVDA’s actions obtained an answer in response – captured between the optimism of investors and the climbing of commercial anxieties. The result? A slide from 24% from the year to start, while the markets are fighting with the geopolitical turbulence introduced by the 47th president.
The last blow came last week, when the Trump administration informed Nvidia, it must obtain an export license to send its AI H20 fleas to China. The company subsequently informed investors that this would lead the company to take a $ 5.5 billion due to “stocks, purchase commitments and related reserves”.
For the upper investor Henrik Alex, who is one of the 2% of the pros of the Tipranks action, this last blow was another reason to doubt NVDA’s ability to exceed commercial turbulence – at least in the near future.
“With Nvidia now deeply entangled in the trade war of the new American administration, the risk of title has increased considerably,” warns the 5 -star investor.
Worse still, that $ 5.5 billion could be the start. According to Alex, Nvidia has received around $ 18 billion on H20 orders from China in 2025 only. With these now disturbed pipelines, he thinks that the company should lose “significantly” higher income during the 201026 fiscal year.
Adding fuel to the fire, Alex points to an in -depth examination around the Nvidia chips used in the large -language model in depth, yet another potential flash point in what quickly becomes a high challenges.
“While trade tensions with China continue to degenerate almost daily, it is increasingly difficult to envisage a short -term solution,” said Alex.
In the middle of this environment, projections of 50% income and profits growth for the 2010 financial year seem unrealistic to Alex. The investor does not expect the story to move anytime soon.
“Given the risk of a persistent title, I would expect Nvidia’s actions to remain under pressure at the moment,” concludes Alex, who assesses NVDA shares a sale. (To watch Alex’s history, click here)
“Accept to disagree” seems to be the feeling of Wall Street. With 37 purchase recommendations and 5 prisoners, NVDA claims a high purchase consensus rating. Its average price target of 12 months of $ 169.30 has an increase potential of ~ 67%. (See NVDA actions forecast))
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Warning: The opinions expressed in this article are only those of the star investor. Content is intended to be used for information only. It is very important to do your own analysis before investing.
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