Nvidia (NVDA) Will Benefit From Resolution of Trade War in the Medium Term, Veteran Analyst Says

The Trump administration is looking to resolve the trade war between the U.S and China, and the dispute is likely to be resolved in the next 90 days, Patrick Moorhead  Founder, CEO, and Chief Analyst of Moor Insights & Strategy told Yahoo Finance recently.

Moorhead suggested that the administration's stance makes NVDA stock attractive for investors with at least a medium-term time horizon.

On the other hand, NVDA and other large chip makers are facing a major risk, Moorhead warned.

Moorhead Suggests That NVDA Is Attractive for Medium-to-Long-Term Investors

Moorhead was asked "What should investors be looking at in terms of a psychological marker or a technical marker in order to determine if this is a safe level to invest in Nvidia?"

He answered, "A psychological marker is that the Trump administration has painted itself into a little bit of a corner and is trying to find a way out of (the trade wars). That's because (officials) know if you bring down Apple (AAPL) and you bring down Nvidia (NVDA), you're taking the stock market down."

The analyst added that he is "pretty confident" that the trade issues "will be resolved in the next 90 days."

Nvidia, Peers Are Still Facing a Major Risk

Since Nvidia obtains 20%-30% of its revenue from China, the company would take a major hit if the U.S. sought to restrict the export of notebook and gaming chips to China, according to Moorhead. AMD (AMD) and Intel  (INTC) are in a similar situation, he added.

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Disclosure: None. This article is originally published at Insider Monkey.