Nvidia (NASDAQ:NVDA) has rallied over 52% from its trough this year back in April, but the price action has been moderating once again. It is up over 9% in the past month, but there hasn’t been much progress made in the past two weeks. Many other semiconductor stocks have also been cooling down.
NVDA’s current price is similar to where it plateaued in 2024 before declining amidst tariff fears. The comeback rally has mostly been sparked by another earnings beat and guidance increase by Nvidia. But now that the price is flatlining again in the $140s range, should you take profits on NVDA stock? Let’s take a look.
Nvidia did beat analyst estimates in Q1, but only did so due to surging revenue from the gaming segment, which rose 48% sequentially to $3.8 billion. The data center segment actually missed. The guidance of $45 billion also fell short of the $45.9 billion that was expected by Wall Street. Investors looked past it, since Nvidia explained its guidance would have been $53 billion if it weren't for restrictions on exporting to China.
The stock is up 6.7% since that beat. This is pretty fair, since China-related volatility could last for a long time. No comprehensive trade treaty has been made, and chip restrictions are unlikely to be lifted.
The next earnings report from Nvidia will be in late August. There are no near-term catalysts in play here, so most of the price action is being dictated by the broader market. NVDA stock’s price action is likely to trend more bearish in the near term due to geopolitical volatility and the July tariff expiry getting closer.
I’d still buy NVDA stock if I were a long-term investor. The one-year consensus price target of $173.19 implies 20.4% upside.
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