Gene Munster, managing partner at Deepwater Asset Management, joined CNBC to discuss Nvidia's (NVDA) recent earnings and the stock's future trajectory, expressing optimism about its growth despite looming challenges. Munster highlighted Nvidia CEO Jensen Huang's strategic messaging during the earnings call, which emphasized the company's efforts to align with U.S. interests amid potential export restrictions to China. Huang underscored Nvidia's role in bringing advanced manufacturing back to the U.S., working with partners like TSMC, a move that resonates with the White House's push to reduce reliance on foreign tech production, particularly from China. He also expressed confidence in the administration's vision, suggesting a potential resolution to trade tensions.

Munster believes the White House prioritizes economic growth over stringent chip export curbs, based on insights from a conversation with a former high-level U.S. trade official. He sees a possible negotiation where restrictions on companies like Nvidia could ease as part of a broader trade deal, allowing U.S. firms to benefit from China's demand for AI technology. Despite headlines suggesting worsening U.S.-China trade relations, Munster remains optimistic that the situation could resolve by year-end, creating a significant tailwind for Nvidia. He noted that without China-related restrictions, Nvidia's April revenue would have surpassed Wall Street expectations by 8%, underscoring the impact of these curbs, which reduced overall revenue by about 15%.

Addressing concerns that China might pivot to domestic players like Huawei during a six-to-nine-month period of restricted access to U.S. tech, Munster acknowledged the possibility but argued that the risk is already reflected in current analyst estimates. He pointed out that Wall Street's projections for the next four quarters have largely accounted for reduced sales of Nvidia's lower-end chips, like the H20, in China. If trade restrictions loosen, this could unlock significant upside for Nvidia's stock.

Beyond the China issue, Munster emphasized the broader AI boom as a key driver of Nvidia's growth. He noted that the company's guidance for the July quarter exceeded analyst expectations by 8%, a sharp increase compared to the average 2% beat over the prior three quarters. This reflects accelerating demand for AI infrastructure, with hyperscalers only about a third of the way through their buildouts. Demand from industries and sovereign entities is still in its infancy, suggesting Nvidia's growth could extend for years. Munster believes the AI buildout is progressing faster than even optimistic forecasts predicted, positioning Nvidia for sustained strong performance regardless of trade outcomes with China.