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'Full hit from China': Analysts are staying bullish on Nvidia ahead of earnings, but tariffs loom large
- Nvidia is preparing to report its first-quarter earnings, with analysts anticipating a potential hit from tariffs and trade policies, particularly in China.
- Wall Street is generally optimistic about Nvidia's earnings, but concerns are looming over uncertainties, such as tariffs and trade policy restrictions.
- Nvidia has warned about a $5.5 billion impact from trade restrictions, attributing it to the ban on sales of its H20 chip in China.
- Analysts from Bank of America forecast a potential $4-$5 billion headwind on Nvidia's shipments from China in the second quarter, affecting sales guidance.
- Morgan Stanley remains positive on Nvidia despite challenges, with the company being its top pick in the semiconductor industry.
- Piper Sandler expects Nvidia to potentially miss revenue for the first quarter due to uncertainties related to the US economy, tariffs, and the ban on its H20 chip in China.
- DA Davidson notes that restrictions on chip sales in China will likely remain a concern for Nvidia until new regulations are put in place.
- Melius Research anticipates that Nvidia's guidance for the second quarter may be lowered to account for a full hit from China, despite decent earnings for the first quarter.
- CFRA Research highlights the improving outlook for Nvidia, citing progress in US-China trade negotiations and the removal of AI diffusion rule restrictions.
- Nvidia's recent Saudi Arabia deal and the commitment of tech giants like Google and Amazon to invest in AI and data centers are seen as positive indicators for the company's growth.
- Despite near-term uncertainties, analysts maintain their positive outlook on Nvidia, expecting better clarity on rules and regulations in the future.
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