From Nasdaq: 2024-09-18 18:08:00

Artificial intelligence (AI) has become a hot investment opportunity, especially for semiconductor companies. Nvidia’s stock has surged 760% since ChatGPT’s success in 2022, surpassing a $3 trillion market cap and becoming the third-largest company by market cap worldwide. However, CEO Jensen Huang’s recent comments about the pressures and responsibilities facing Nvidia have raised concerns about the stock’s potential.

Goldman Sachs hosted a technology conference where analysts questioned Huang on various issues. While Nvidia has consistently exceeded expectations, Huang’s remarks about the intense pressure from customers and the recent delay in Blackwell chip releases have raised doubts about the stock’s future performance. With Nvidia’s strong influence in the AI market, investors are questioning whether the stock has peaked.

Investors should consider the risks before investing in Nvidia, as the company faces competition, customer migrations, and high expectations that may not be sustained in the long term. Despite potential short-term gains, some analysts believe that Nvidia’s stock may normalize sooner than expected. The Motley Fool’s Stock Advisor team has not listed Nvidia as one of the top 10 stocks to buy, suggesting caution for potential investors looking to jump into the semiconductor darling.



Read more at Nasdaq: Has Nvidia Stock Peaked? These Words From the CEO May Suggest What’s Next