Nvidia’s AI Demand Remains Strong Despite Growth Concerns

Nvidia's stock has faced pressure following its Q2 earnings report, with some investors questioning whether the AI chip giant's explosive growth is plateauing. Revenue growth, while still robust, showed signs of moderation compared to previous quarters.

Top analysts, including J.P. Morgan's Harlan Sur, argue these concerns are overblown. Demand continues to outstrip supply, with lead times for Nvidia's Blackwell and Blackwell Ultra chips extending into quarters rather than months. The company maintains stable production of about 1,000 racks weekly, though the product mix has shifted significantly.

'The spending cycle shows no signs of slowing,' Sur noted after meeting with Nvidia executives. The AI infrastructure buildout, now in its third year, appears sustainable as enterprises race to deploy next-generation computing capabilities.