JPMorgan Warns Nvidia's Rally May Be Limited

JPMorgan analysts have warned that Nvidia's (NVDA) recent rapid rally may be limited in the coming period. The bank noted that the surge in demand for AI chips has driven the company's shares to record levels, but they are cautious about the sustainability of this momentum. Analysts stated that Nvidia's current market valuation largely prices in high growth expectations, and any negative news could lead to a correction in the stock. In the JPMorgan report, it was emphasized that despite Nvidia's strong position in data centers and AI, increased competition and regulatory risks could slow the company's growth pace. In particular, more aggressive entry by rivals such as AMD and Intel into the AI chip market could threaten Nvidia's market share. Additionally, U.S. chip export restrictions on China have the potential to negatively impact Nvidia's revenues. While maintaining its price target for Nvidia shares, the bank suggested that investors might consider taking profits at current levels. JPMorgan analysts believe in the company's long-term growth potential but highlighted the risk of overvaluation in the short term. They warned that if Nvidia's earnings per share growth slows, the market could revise its expectations downward. This is not investment advice.