Nvidia (NASDAQ:NVDA) rose more than 5% on Monday as investors responded to progress in U.S.-China trade negotiations, with broader tech shares also rallying. But some analysts say the upbeat tone may not last, citing concerns about the long-term effects of former President Donald Trump's tariff policies, according to a Monday report.

Warning! GuruFocus has detected 3 Warning Signs with NVDA.

Kathleen Brooks, research director at XTB, cautioned that recent gains may mask deeper structural challenges. She pointed to growing competition from Chinese tech firms, including Huawei and Alibaba (NYSE:BABA), which are building advanced chips that could challenge U.S. dominance in AI and semiconductors across Asia.

Brooks said Nvidia's position is under threat, with lingering anxiety around China's Deepseek program still weighing on sentiment. Despite Monday's bounce, Nvidia remains down about 10% year to date.

She added that although trade ties between the U.S. and China appear to be improving, the earlier embargoes may have already pushed Asian markets to diversify away from American suppliers.

Is NVDA a Buy Now?Nvidia Surges on Trade Hopes, But Analysts See Long-Term Risk

Based on the one year price targets offered by 51 analysts, the average target price for NVIDIA Corp is $163.61 with a high estimate of $235.92 and a low estimate of $100.00. The average target implies a upside of +33.02% from the current price of $123.00.

This article first appeared on GuruFocus.

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