Investors uncertain about Nvidia stock due to concerns about margins and sales drop in China

From Yahoo Finance: 2025-05-25 08:30:00

Investors are unsure of Nvidia’s stock as earnings approach, with concerns about gross profit margins and guidance on recovery. Analysts anticipate a potential drop in second-quarter sales and earnings due to the ban on H20 chips in China. The company’s valuation is debated, seen as both cheap and expensive. Market analysts are split on the outlook for Nvidia, with some expecting a positive catalyst to boost the stock, while others are cautious about its growth potential. Nvidia’s strong financial performance and growth rates have attracted investors, leading to a 42% increase in share price, despite stable price-earnings and price-sales ratios. Nvidia, known for its high-quality products, is seen as ‘cheap’ because of its lower stock price compared to Meta and Microsoft. Some may see this as a bargain, while others may question the value of paying a premium for a basic item like a white tee. StockStory aims to help individual investors make informed decisions to beat the market. Follow Brian Sozzi, Yahoo Finance’s Executive Editor, for more insights on the market trends and latest news in technology and finance. Click here for the latest updates that may impact the stock market. Read more financial and business news on Yahoo Finance.



Read more at Yahoo Finance: Nvidia has lost its shock power to investors, for now