Hold Off on Taking Action for Now, Advises Leading Analyst on Nvidia Stock

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This recovery has largely stemmed from renewed investor excitement surrounding AI demand. Recent developments have only added to this optimism. The Trump administration has assured that Nvidia can export advanced AI chips to China, which is a considerable relief, especially since the company faced a $4.5 billion revenue loss in the first quarter of 2026 due to previous export restrictions.

With these regulatory issues seemingly resolved, it might be tempting to think Nvidia is back on a clear upward trajectory. Yet, there are varying opinions on whether now is the right moment to invest further.

Investor Brett Ashcroft Greene has raised some points of caution, suggesting that the recent market rallies may have happened too quickly. “As optimistic as I am, this pace feels a bit too rapid,” Greene noted, indicating that he has downgraded NVDA.

Investors haven’t really questioned Nvidia’s fundamental strengths. Greene believes the long-term growth narrative is still strong, particularly with the potential rise of sovereign AI—tailored systems for specific regulations that CEO Jensen Huang has championed for years. The recent adoption of AI tools by the U.S. government could herald a broader shift, and if sovereign AI catches on, demand for Nvidia’s chips might outpace current expectations.

However, Greene also highlighted production challenges, suggesting that Nvidia may struggle to meet the rising global demand, which could limit its growth potential.

There’s also concern regarding the stock’s valuation. Back in April, Nvidia had one of the lowest price-to-earnings (P/E) ratios among the Magnificent 7 at 21.31x. Now, it has jumped to the second highest at 39.75x.

“If you’re on board, enjoy the ride, but if not, you might feel a bit dizzy with the market shifts. Personally, I think I’ll wait for a more favorable price,” Greene concluded, stating a neutral position on NVDA shares.

Meanwhile, Wall Street seems to maintain a bullish outlook. NVDA currently enjoys a strong buy consensus, with 34 buy ratings versus three holds and one sell. However, the average price target of $182.06 indicates only about a 6% potential increase from current levels, suggesting that much of the anticipated growth may already be reflected in the price.