Shorting Nvidia in the Long Run May Be a Mistake, Analysts Say

TradingKey - Nvidia’s market capitalization has fallen below the $3 trillion threshold, with Monday’s decline wiping out $265 billion in value, bringing its valuation down to $2.79 trillion.  

Tariffs are likely the investors' top concern. Some of its complex chip systems and entire computing units are manufactured in various regions, including Mexico and the US. On Tuesday, President Donald Trump is set to impose a 25% tariff on imports from Mexico and Canada, which may impact these products.  

Meanwhile, Nvidia came under scrutiny on Monday for exports to Singapore, with some analysts speculating that this could be a potential route for shipping chips to China, circumventing U.S. export restrictions.  

Despite the short-term pressures, Yahoo Finance Executive Editor Brian Sozzi remains bullish on Nvidia in the long run. He noted the strong market enthusiasm for DeepSeek and suggested that Nvidia’s valuation could experience significant upside as DeepSeek and other inference models become more widely adopted. 

The upcoming GTC (GPU Technology Conference) could serve as a potential catalyst for the stock. Nvidia CEO Jensen Huang stated that the company was about to achieve a significant performance leap and encouraged attendees to join GTC, where he would discuss Blackwell Ultra, Vera Rubin, and showcase One Click, emphasizing that the upcoming innovations would be highly exciting.

Furthermore, Anjney Midha—a lecturer at Stanford’s CS153 course and a partner at leading Silicon Valley venture capital firm Andreessen Horowitz (a16z)—believes that Wall Street may be underestimating the potential impact of Nvidia’s Stargate initiative. The Stargate project could significantly drive demand for Nvidia’s chips, presenting a major growth opportunity for the company.