Nvidia’s AI Dominance Faces Skepticism Amid Soaring Demand
Nvidia’s third-quarter earnings underscored its pivotal role in the AI revolution, with revenue surging 62% to $57 billion and adjusted earnings jumping 60% year-over-year. The chipmaker’s data center business, fueled by insatiable demand for AI accelerators, continues to outpace expectations. Wall Street remains overwhelmingly bullish, with most analysts maintaining Buy ratings and raising price targets.
Yet one dissenting voice persists: Jay Goldberg of Seaport Global. His Sell rating and $140 price target hinge on concerns over slowing demand and Nvidia’s financing model—where the company both sells chips and funds customer computing capacity. This dual role, Goldberg argues, creates unsustainable market dynamics that bullish investors may be overlooking.
The divergence highlights a critical tension in tech investing: whether Nvidia’s AI supremacy justifies its valuation amid rising competition and potential cyclicality. As one portfolio manager noted, 'The best trades often emerge when consensus ignores structural risks.'
