Nvidia (NVDA) heads into its highly anticipated first-quarter earnings report today, May 20, with most Wall Street firms still bullish on the AI chip giant. However, not everyone believes the rally will continue.
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High conviction NVDA bears now have this Tradr ETFThe firm remained cautious on Nvidia ahead of earnings and warned that even another strong earnings beat may not be enough to keep the rally going. Linx currently has a $205 price target on NVDA stock, one of the lowest targets on Wall Street.
According to the firm, investors are now looking beyond Nvidia’s usual beat-and-raise quarters and focusing more on whether the company can keep its AI growth story strong over the next several years.
Why Linx Equity Is Cautious on Nvidia
Linx said much of Nvidia’s recent rally has been driven by excitement around future AI products such as Rubin and Agentic AI systems. At the same time, the firm believes momentum in Nvidia’s core GPU business may be starting to slow.
The analysts also noted that strong Blackwell chip sales alone “are unlikely to change many minds,” as investors now want clearer progress on Nvidia’s future Rubin and Feynman platforms.
While Linx acknowledged Nvidia shares could still jump immediately after earnings, the firm believes the gains may not last long. The firm wrote, “In the days and weeks ahead, we expect the stock to fade a potential spike up on print and give up the gains of last month.”
The cautious stance stands out because most Wall Street firms remain bullish on Nvidia ahead of earnings, driven by continued strong demand for AI chips, cloud infrastructure, and data center spending.
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 $281.97 per share implies 27.82% upside potential.
