Nvidia: stock remains volatile after results – buy, sell or hold?

Nvidia shares remained under pressure on Tuesday despite last week’s release of a bumper new quarterly report.

The title was shaky at the start of the session. At the time of writing, Nvidia stock was up about 0.5% at nearly $216.26 after falling nearly 2% on Friday.

The muted reaction comes even as Nvidia once again exceeded Wall Street’s expectations and extended one of the most remarkable streaks in contemporary technology markets.

According to FactSet data, Nvidia has now beaten analysts’ estimates on revenue and operating income for 14 consecutive quarters.

The company reported first-quarter revenue growth of 85% year-over-year and anticipated even faster growth for the current quarter.

However, with a market capitalization exceeding $5 trillion and stocks rising sharply over the past two years, investors appeared reluctant to aggressively continue the rally immediately following the results.

Huang highlights massive CPU opportunity

Nvidia Chief Executive Officer Jensen Huang continued to reinforce the company’s long-term growth story tied to artificial intelligence over the weekend.

Speaking on Saturday, Huang said Nvidia’s estimate of a $200 billion future CPU market includes China, underscoring how important the country still is to Nvidia’s long-term ambitions despite ongoing geopolitical tensions.

Central processing units, or CPUs, have become a growing focus of attention as the rise of agentic AI broadens computing demand beyond the traditional graphics processors used for training large models.

During last week’s earnings call, Huang said the new “Vera” CPU architecture gives Nvidia access to a new addressable market of about $200 billion.

The company is increasingly positioning itself not only as the dominant GPU provider for AI workloads, but also as a broader AI computing platform spanning CPUs, networking, software and full-stack infrastructure.

The situation in China remains uncertain

China remains one of the biggest unresolved questions for Nvidia investors.

The company has obtained licenses from the US government allowing the sale of its H200 chips in China under certain restrictions.

However, Chinese authorities have not yet approved the large-scale deployment of these chips, with Beijing continuing to favor the development of domestic semiconductor suppliers.

President Donald Trump and Chinese President Xi Jinping failed to achieve a breakthrough on access to semiconductors during recent meetings in Beijing that Huang attended as part of the US trade delegation.

Reuters reported last week that the United States has approved about 10 Chinese companies to purchase Nvidia’s H200 chips, although no deliveries have apparently taken place to date.

“H200 has been cleared for shipment to China. It would be great to be able to serve this market,” Huang said over the weekend in Taipei.

“The Chinese market is very important. It is of course very large. HAS”

At the same time, Huang recently acknowledged that Nvidia has “largely conceded” Chinese market share to Huawei, as domestic alternatives continue to gain support in Beijing.

Analysts still consider Nvidia cheap

Despite the stock’s recent weakness, analysts are increasingly arguing that Nvidia’s valuation no longer reflects its dominant position in artificial intelligence infrastructure.

After the post-earnings pullback, Nvidia is now trading at a forward price-to-earnings ratio of just over 22 times, according to FactSet.

This compares to about 95 times for Intel and almost 47 times for Advanced Micro Devices.

The average analyst target for Nvidia has now climbed to around $294, while around 93% of analysts covering the stock maintain recommendations equivalent to “buy.”

Several major houses – including Baird, Goldman Sachs and Morgan Stanley – raised their price targets after the publication of the results.