Nvidia stock remains wobbly after earnings: buy, sell or hold?

Shares of Nvidia remained under pressure on Tuesday despite the company delivering another blockbuster earnings report last week.

The stock was wobbly in early trading. At the time of writing, the Nvidia stock was up around 0.5% to around $216.26 after declining nearly 2% Friday.

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

According to FactSet data, Nvidia has now beaten analyst expectations on both revenue and operating income for 14 consecutive quarters.

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

Still, with Nvidia’s market valuation exceeding $5 trillion and shares having surged dramatically over the past two years, investors appeared reluctant to aggressively chase the stock higher immediately following the results.

Huang highlights massive CPU opportunity

Nvidia chief executive Jensen Huang continued reinforcing the company’s long-term artificial intelligence growth narrative over the weekend.

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

Central processing units, or CPUs, have become an increasingly important focus as the rise of agentic AI broadens computing demand beyond traditional graphics processing units used for training large models.

During Nvidia’s earnings call last week, Huang said the company’s new “Vera” CPU architecture gives Nvidia access to a new addressable market worth approximately $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.

China still remains uncertain

China continues to be one of the biggest unresolved questions for Nvidia investors.

The company has received US government licenses allowing sales of its H200 chips into China under certain restrictions.

However, Chinese authorities have not yet approved broad deployment of the chips as Beijing continues prioritizing the development of domestic semiconductor suppliers.

President Donald Trump and Chinese President Xi Jinping failed to produce a breakthrough on semiconductor access during recent meetings in Beijing attended by Huang as part of the US business delegation.

Reuters reported last week that the United States approved around 10 Chinese firms to purchase Nvidia’s H200 chips, though no deliveries have reportedly occurred so far.

“H200 has been licensed to ship to China. It would be terrific to be able to serve that market,” Huang said over the weekend in Taipei.

“The Chinese market is very important. It’s very large, of course.”

At the same time, Huang acknowledged recently that Nvidia has “largely conceded” portions of the Chinese market to Huawei as domestic alternatives continue gaining support from Beijing.

Analysts still see Nvidia as cheap

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

Following the post-earnings pullback, Nvidia now trades at a forward price-to-earnings ratio slightly above 22 times, according to FactSet.

That compares with roughly 95 times for Intel and nearly 47 times for Advanced Micro Devices.

The average Wall Street price target on Nvidia has now climbed to roughly $294, while approximately 93% of analysts covering the stock maintain Buy-equivalent ratings.

Several major firms — including Baird, Goldman Sachs, and Morgan Stanley — raised their price targets following the earnings release.