When you were running like Nvidia (NVDA) 3.97%)) Over the past few years, that’s because investors are seeing great growth in the future, most of the time. For a company that is located in the form of Pick and Schubel playing across the AI (AI) industry, many companies believe that sky is the limit of AI Chip King.
However, one Wall Street analyst believes it may not be that way anymore, and if there is no price target that does not list the price target, it has downgraded NVIDIA from its buy rating to hold.
Supply catches up to demand
Summit Insights analyst Kingai Chan hopes that Nvidia will continue to break consensus estimates in future revenue reports, especially after the 4th quarter results of 2025, with NVDA outperformance and growth potentially repeating 2HFY26 as NVDA’s GPUS supply.
Chang also pointed out a larger margin contraction than expected as production of next-generation blackwell chips is on the rise. The emergence of Deepseek, a powerful AI chatbot that appears to have been built with a fraction of popular names like ChatGpt, also appears to be in Chan’s mind. He noted that the ability to develop AI programs with more efficient AI training and advanced computing will have a negative impact on Nvidia from the medium to long term.
Chan gives some good points here. Industry leaders usually find ways to adapt to new challenges, but many investors still don’t know about AI and its potential obstacles. There could be short-term risks from the Trump administration, so caution is needed on Nvidia and other large AI stocks with surges in valuations as more intense export controls on chips are potentially continuing.
Bram Berkowitz has no position in any of the stocks mentioned. Motley Fool has a job at Nvidia and recommends. Motley Fools have a disclosure policy.
