Piper Sandler analyst Harsh Kumar lowered the price target on NVIDIA (NASDAQ: NVDA) to $150.00 (from $175.00) while maintaining an Overweight rating.

The analyst commented: "After market close, NVDA released an 8-K that stated the company expects its first quarter to include charges of $5.5B associated with H20 products for inventory, purchase commitments, and related reserves. The charge comes after the U.S. government informed the company that the H20 will require a license to be exported to China. As a result, we are reducing our numbers to reflect these charges as well as future purchases of data center products to China. Our new estimates are $3.45 in EPS for FY26 and $5.08 for FY27. We reduce our PT to $150.

NVIDIA Bull vs Bear:

(Positive) Nvidia is Still the Most Reliable and Trusted Game in Town: Following GTC 2025, we think it was again clear that NVDA remains the market leader in accelerated computing and AI. We see investors continuing to raise questions regarding the market positioning and product offerings of NVDA's competition.

(Positive) The Big Get Bigger, Extending Their Lead in Data Center GPUs

(Positive) Agentic AI Requires More Compute

(Negative) Visibility Questions All About 2026: There is likely no debate that investor sentiment sees clear growth through the rest of this year given the feedback around the Blackwell performance and ensuing ramp. However, questions continue around the next year’s growth story and investors are looking to 2026 visibility. In addition, skeptics have looked to the law of large numbers to point to growth potentially slowing down as revenues get larger. Near-term, questions around NVDA’s earnings beat and raise cadence of $2 billion in revenues continue to circle.

(Negative) Software Firms Are Not Struggling for GPU Capacity: We had the opportunity to meet with a number of software companies last week on our AI Discovery Bus Tour. Throughout our meetings, managements mentioned that GPU capacity is readily available at this time and no firm was struggling to gain access to GPUs. Near-term, this reinforces the argument that investments in GPU capacity may be peaking."