Nvidia Stock Rebound Faces Geopolitical Headwinds Despite Strong AI Demand

Nvidia shares have surged roughly 50% since their post-Liberation Day low, fueled by easing trade tensions and record Q1 fiscal 2026 revenues of $44 billion—a 69% year-over-year increase. The data center segment grew even faster at 73%, underscoring relentless AI infrastructure demand.

Investor Johnny Zhang remains cautious. "I believe 2H 2025 could bring more uncertainty," he warns, citing lagging effects of Trump-era tariff policies. Earlier export restrictions on H20 GPUs had already cost Nvidia $4.5 billion last quarter.

The rebound defies earlier bearish sentiment driven by U.S.-China trade friction and fears of AI capex contraction. While TipRanks tools highlight undervalued opportunities, geopolitical risks linger like unpatched code in Nvidia's growth algorithm.