Nvidia receives its first Wall Street sell rating due to challenges and potential slowdown in AI

From Nasdaq: 2025-05-12 03:51:00

President Donald Trump’s tariff policy is overshadowed by the growing interest in artificial intelligence (AI) among investors. PwC analysts predict AI could boost global GDP by $15.7 trillion by 2030. Nvidia emerges as a top beneficiary of the AI revolution, with its market value soaring to $130.5 billion in just two fiscal years.

Analyst Jay Goldberg issues a sell rating on Nvidia, citing challenges in surpassing Wall Street’s expectations and potential slowdown in AI spending. Export restrictions to China pose a significant headwind. More sell ratings are anticipated as Nvidia prepares to release its first-quarter results on May 28.

Internal competition poses a major threat to Nvidia’s dominance in the AI market, with customers developing their own solutions. The company is also losing its competitive edge due to increased availability of AI solutions. Nvidia’s gross margin has been declining, raising concerns about its future performance in the market.

Analysts predict a potential bubble burst in the AI industry, with many businesses not optimizing their AI solutions. Sell ratings for Nvidia stock are expected to increase as analysts pay attention to these factors. Investors are urged to seize potential opportunities before it’s too late by joining Stock Advisor for alerts on promising companies.



Read more at Nasdaq: Prediction: Nvidia Just Received Its First Wall Street Sell Rating — and More Will Follow After May 28