NVIDIA Corporation (NASDAQ:NVDA) is a top AI stock on Wall Street. Seaport Global Securities analyst reiterated a “Sell” rating with a $140 price target due to competitive risks from Google’s TPUs and financial pressure. Nvidia faces growing competition and financial challenges not fully reflected in results.

Nvidia’s $26 billion cloud compute service agreements could lower gross margins significantly. Google’s promotion of TPUs and Nvidia’s growing customer commitments add pressure. Seaport Securities notes increased working capital this quarter, possibly due to smoothing out needs among ODM customers.

NVIDIA Corporation specializes in AI-driven solutions for data centers, self-driving cars, and robotics. While NVDA shows potential, other AI stocks may offer better upside potential with less downside risk. For a potentially undervalued AI stock benefiting from tariffs and onshoring, see Insider Monkey’s free report.

For more AI stock news, check out “10 AI Stocks Making Headlines on Wall Street” and “10 AI Stocks on the Market’s Radar.” Disclosure: None.

Read more at Yahoo Finance: Seaport Global Maintains Sell on NVIDIA (NVDA), Citing TPU Competition and Heavy Customer Commitments