Nvidia will report Q2 earnings on Aug. 27, with analysts forecasting a 48.5% increase in earnings to $1.01 per share and a 53% revenue rise to $46 billion, driven by AI chip demand.

Despite optimistic forecasts, two analysts have reservations about Nvidia stock, citing U.S. trade restrictions on semiconductor exports to China and potential tax implications, raising concerns about revenue from China.

Deutsche Bank and KeyBanc express worries about Nvidia’s China revenue and potential guidance misses, with KeyBanc warning about a 15% tax on AI exports and pressure from the Chinese government to use domestic AI chips.

While concerns exist, both analysts still expect Nvidia to exceed revenue forecasts, with Blackwell production increasing and a new Blackwell Ultra (B300) chip on the horizon, prompting KeyBanc to raise its price target on the stock to $215.

Despite expectations of a strong Q2 earnings beat, analysts are cautious about future guidance, with Wall Street looking for at least 50% annual earnings growth for Nvidia stock to be a clear-cut buy, while forecasts only project 30% annual growth. Nvidia stock may not be a buy at its current price, but could be after potential earnings. The Motley Fool Stock Advisor team revealed the 10 best stocks to buy now, excluding Nvidia. Their picks historically outperformed the S&P 500, with an average return of 1,057%. Don’t miss out on their latest recommendations.

Read more at finance.yahoo.com: Wall Street Analysts Expect This Popular AI Stock Could Face Challenges Ahead