Nvidia's (NVDA) shares "can really start to work again" when tariff levels and export restrictions are finalized by Washington, Ben Reitzes, a Managing Director and Head of Technology Research at Melius Research told CNBC recently.
The Many Positive Catalysts of NVDA Stock
Labeling Nvidia (NVDA) "the AI leader," Reitzes stated that the chip maker "is doing great."
More specifically, the researcher is bullish on the company's new chips.
He also noted that large cloud-infrastructure firms Microsoft (MSFT), Meta (META), and Amazon (AMZN), which buy many of Nvidia's advanced AI chips, are spending a great deal of money on AI. Additionally, MSFT is investing large sums in its cloud business, according to the researcher.
The Researcher's Bottom Line on NVDA
"It was a pretty good week for Nvidia, all things considered," Reitzes said. The stock can start rallying again after the government's regulations become more certain, he said.
But the researcher added that he doesn't expect the shares to again deliver the huge gains that they generated in recent years.
While we acknowledge the potential of NVDA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.