Nvidia Stock: Analyst Views on Recent Performance

Deepwater’s Gene Munster has shared insights on Nvidia Corporation (NVDA) regarding its recent performance, which he described as solid but not extraordinary. Importantly, he holds a positive outlook on the stock for the long term.

What Happened: In a recent interview with Bloomberg, Munster said, “Yeah, I would actually say it was great, but not extraordinary. And that’s really what this needs to be.” He pointed out issues related to the company’s margin guidance and the impact tariffs may have on its future performance.

Munster highlighted that Nvidia raised its guidance by $1 billion instead of a couple of billion, and that the margin guidance was slightly below what investors expected. During the conference call, when questioned about the potential to increase margins amid prevalent tariff issues, Nvidia's CFO remarked that the situation was uncertain, stating, ‘..it’s a little bit of an unknown until we understand what the U.S. government’s plan is.’ This ambiguity may have shaken investor confidence, contributing to a decline in the stock during after-hours trading on Wednesday.

Additionally, Munster noted that Nvidia had previously indicated that Blackwell chips would be sold out for “several quarters” in 2025, whereas this time there was no clear communication on that regard, which has raised concerns among investors.

Why It Matters: Despite these uncertainties, Munster remains optimistic about Nvidia’s long-term outlook. He pointed out that demand for advanced computing is currently at unprecedented levels, driven by new AI models that require substantially more processing power.

In his analyst note, Munster stated, “I believe Jensen (Jensen Huang) is on the right track in claiming that reasoning increasingly drives a 100x increase in demand for compute. If true, the company will return to reporting impressive upside in CY26.”

He added, “Despite the emergence of cheaper alternatives to Nvidia GPUs, including custom silicon, I believe they will remain the dominant workhorse for the next 3-5 years.”

Munster sees the current dip in stock price as a buying opportunity, declaring, “I think that this is a buy here on the pullback.”

In contrast, DA Davidson's tech analyst, Gil Luria, has predicted a potential slowdown in Nvidia's growth. He noted that while the company’s revenue for its fiscal year 2025 more than doubled year-over-year to $130.5 billion, this could be viewed as the peak for Nvidia.

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by editors.

Nvidia, Stock, Analysis