Nvidia (NVDA) delivered another strong quarterly report, beating Wall Street expectations on both revenue and earnings as demand for AI chips remained robust. However, despite the solid results, NVDA stock moved lower in after-hours after earnings, showing that investors are becoming more focused on future risks. NVDA stock is marginally up in pre-market hours today. Here are three key pressure points currently weighing on NVDA stock.
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Explore NVDS for 2X short leverage on NVDAFor context, Nvidia reported earnings per share of $1.87, beating analysts’ estimates of $1.75. Meanwhile, revenue also jumped 85% year over year to $81.6 billion, ahead of Wall Street expectations of $78.9 billion.
1. Supply Constraints
During the company’s earnings call, Jensen Huang said Nvidia expects supply constraints throughout the entire lifecycle of its upcoming Vera Rubin AI platform. He said the world will eventually have billions of AI agents, and Nvidia expects strong demand for its Vera platform. He added that the company is focused on building AI infrastructure, which requires extremely powerful storage systems.
Notably, Nvidia’s Vera Rubin is Nvidia’s next-generation AI platform that will replace its current Blackwell chips. Earlier this year, Nvidia introduced the system and said it is expected to launch in the second half of 2026. The company believes Vera Rubin could become a major step forward for AI computing and infrastructure.
Overall, Nvidia raised its total supply commitments to $145 billion and said it remains confident in generating $1 trillion in combined Blackwell and Rubin revenue between 2025 and 2027.
2. Nvidia Flags Ongoing Uncertainty Around China Shipments
Another major concern from Nvidia’s earnings was uncertainty over China imports. During the Q1 earnings call, Nvidia said the U.S. government has approved licenses for H200 chip exports, but the company has not yet generated revenue from those shipments and remains uncertain about future import approvals. This highlights how geopolitical tensions continue to limit Nvidia’s access to China, one of the world’s largest AI markets.
Similar to the previous quarter, Nvidia also did not include any China data center revenue in its guidance for the current quarter.
Following the recent visit of U.S. President Donald Trump to China, officials said China had still not approved purchases of Nvidia’s H200 chips despite receiving U.S. clearance.
3. High Expectations Remain a Concern
Despite crushing estimates and delivering strong growth, Nvidia’s high expectations are becoming harder to justify as investors grow more cautious in a higher interest-rate environment.
Meanwhile, investors are concerned that Nvidia may not be able to maintain its extremely fast revenue growth forever. After several quarters of huge gains driven by AI demand, some investors fear growth could start slowing as comparisons become tougher and the market matures.
Is Nvidia Stock Still a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 40 Buys, one Hold, and one Sell assigned in the past three months. Furthermore, the average 12-month Nvidia price target of $286.33 per share implies 28.13% upside potential.
These ratings and price targets will likely change as analysts update their coverage following yesterday’s earnings report.
