Nvidia (NASDAQ:NVDA) investors were optimistic this week following signals from the Trump administration indicating a softer stance towards China. President Trump suggested being ‘very nice’ to China to reach a trade deal, confirmed by Treasury Secretary Scott Bessent acknowledging current tariff levels are not sustainable. Nvidia stock rose nearly 7% subsequently, though it remains down 21% for the year.\n\nInvestor Nexus Research warns of a potential 50-60% drop in Nvidia stock, citing threats beyond geopolitical tensions. Huawei could capitalize on Nvidia’s lost China sales, which accounted for 13% of NVDA’s fiscal 2025 revenue, and reportedly aims to compete globally with a supercomputing system surpassing Nvidia’s. Additionally, decreasing capex spending among hyperscalers due to data center oversupply poses another risk. Reports indicate Microsoft and Amazon are canceling or postponing data center leases, signaling a possible slowdown in AI spending.\n\nDespite these risks, Nexus leans neutral with a Hold rating due to Nvidia’s Forward PEG ratio of 0.62x, suggesting the stock may be undervalued. Wall Street remains more bullish, assigning Nvidia a Strong Buy consensus rating backed by 37 Buy recommendations and just 5 Holds. Analysts predict a 12-month average price of $168.49, implying a 58% upside.\n— new from TipRanks
