Why Is This Wall Street Analyst So Bearish on Nvidia? Here Are 3 Key Reasons That Might Shock You

Wall Street's favorite chip darling faces unexpected skepticism as one analyst breaks ranks with brutal honesty.

Competition Heats Up

AMD and Intel aren't sitting idle—they're coming for Nvidia's throne with aggressive pricing and next-gen architecture that could slice into market share.

Valuation Concerns Mount

Current price multiples assume perfection in execution and demand sustainability that even tech's golden child might struggle to deliver quarter after quarter.

Supply Chain Vulnerabilities

Geopolitical tensions and manufacturing constraints expose critical dependencies that could disrupt Nvidia's production pipeline faster than you can say 'chip shortage.'

Sometimes the smartest money questions the most popular trade—even if it means going against the herd mentality that drives so much Wall Street groupthink.

3 reasons Goldberg is bearish on Nvidia stock

Nvidia is growing by leaps and bounds. Sales are up by more than 1,000% over the past five years. And given that the AI market is expected to grow by more than 30% annually for years to come, Nvidia's double-digit growth rates should be here to stay. But shares trade at a lofty 27 times sales, and Goldberg thinks there are cracks beginning to show in Nvidia's growth story.

His first issue is with Nvidia's exposure to China. The ongoing trade war has disrupted the company's ability to sell its marquee chips to the country, a country that has an AI industry growing by 50% or more per year. Nvidia reportedly struck a deal with the U.S. to resume exports, but ongoing issues with the Chinese government may allow Chinese chipmakers to catch up and secure domestic market share.

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Goldberg is also concerned with Nvidia's bullishness surrounding agentic technologies. While agentic services do pose a long-term growth story, Goldberg thinks that the world is still many years away from any meaningful real-world adoption of this technology.

Finally, Goldberg cautions investors that there may be a short-term limit to the skilled labor pool that can scale for AI demand as much as forecasts predict. Even Nvidia has admitted that a huge workforce retraining will be required in an AI-enabled world.

While you may not agree with Goldberg's contrarian outlook, even Nvidia's most bullish investors can benefit from understanding the challenges the company faces.