Why One Analyst Remains Cautious On Nvidia Heading Inkl

Bonisiwe Shabane

-Dec 31, 2025, 3:51 PM

why one analyst remains cautious on nvidia heading inkl

Nvidia (NVDA) has solidified its position as a leader in artificial intelligence (AI) by producing the most powerful chips in the industry. However, its success isn’t just about hardware innovation. The company has also capitalized on its CUDA software platform, which maximizes the potential of GPUs for AI workloads. CUDA has made Nvidia’s GPUs the gold standard for AI training and inference by standardizing a toolset for developers. This strategic advantage has helped Nvidia capture over 90% of the GPU market, making its platforms the top choice in the rapidly growing AI industry. At the same time, Nvidia is expanding into new areas like quantum computing, which presents exciting opportunities.

However, this expansion has also raised concerns among some analysts about the company’s future. DA Davidson analyst Gil Luria recently expressed doubts about Nvidia’s ability to sustain its growth through 2026, suggesting that the company may have peaked and that challenges ahead could slow its momentum. The company has posted several years of triple-digit revenue growth, but some believe 2025 could be a turning point. With rising competition and a maturing market, Nvidia’s future is becoming less predictable. In this article, we’ll explore Nvidia’s impressive achievements, its ongoing advancements, and why some analysts think its best days may already be behind it. Founded in 1993, Nvidia is a global semiconductor company known for its high-performance GPUs, primarily used in gaming and AI applications.

With CEO Jensen Huang forecasting a $1 trillion investment in data centers over the next four years, Nvidia stands to benefit significantly, especially as the data center segment makes up 88% of its revenue. Valued at $3.37 trillion by market capitalization, Nvidia shares delivered an exceptional performance last year, gaining 137% over the past 52-weeks. This surge significantly outpaced the tech-heavy Nasdaq-100 Index ($IUXX), which rose by 24% during the same period. This remarkable growth is largely attributed to the soaring demand for Nvidia’s highly sought-after AI chips, which are revolutionizing numerous industries that rely on intelligent machinery. Chip giant Nvidia (NVDA) is considered to be one of the key beneficiaries of the artificial intelligence boom, thanks to robust demand for its advanced graphics processing units (GPUs). The stock has been under pressure recently due to concerns about valuations of AI plays and growing competition in the AI chip space from rivals like Broadcom (AVGO), Advanced Micro Devices (AMD) and Alphabet-owned...

Nvidia is also facing uncertainty related to chip exports to China amid geopolitical tensions between Washington and Beijing. Despite ongoing pressures, several top analysts remain bullish on Nvidia for several reasons, including its solid track record, strong execution, continued innovation and dominant position in the AI GPU market. TipRanks' AI Analyst also has an "outperform" rating on NVDA stock with a price target of $205. Let's look at the views of three such Wall Street pros who are bullish on Nvidia's growth potential. Following a virtual meeting with Nvidia's vice president of investor relations, Toshiya Hari, Bank of America analyst Vivek Arya reiterated a buy rating on NVDA stock with a price forecast of $275, saying that... Nvidia (NVDA) has solidified its position as a leader in artificial intelligence (AI) by producing the most powerful chips in the industry.

However, its success isn’t just about hardware innovation. The company has also capitalized on its CUDA software platform, which maximizes the potential of GPUs for AI workloads. CUDA has made Nvidia’s GPUs the gold standard for AI training and inference by standardizing a toolset for developers. This strategic advantage has helped Nvidia capture over 90% of the GPU market, making its platforms the top choice in the rapidly growing AI industry. At the same time, Nvidia is expanding into new areas like quantum computing, which presents exciting opportunities. However, this expansion has also raised concerns among some analysts about the company’s future.

DA Davidson analyst Gil Luria recently expressed doubts about Nvidia’s ability to sustain its growth through 2026, suggesting that the company may have peaked and that challenges ahead could slow its momentum. The company has posted several years of triple-digit revenue growth, but some believe 2025 could be a turning point. With rising competition and a maturing market, Nvidia’s future is becoming less predictable. In this article, we’ll explore Nvidia’s impressive achievements, its ongoing advancements, and why some analysts think its best days may already be behind it. Founded in 1993, Nvidia is a global semiconductor company known for its high-performance GPUs, primarily used in gaming and AI applications. With CEO Jensen Huang forecasting a $1 trillion investment in data centers over the next four years, Nvidia stands to benefit significantly, especially as the data center segment makes up 88% of its revenue.

Valued at $3.37 trillion by market capitalization, Nvidia shares delivered an exceptional performance last year, gaining 137% over the past 52-weeks. This surge significantly outpaced the tech-heavy Nasdaq-100 Index ($IUXX), which rose by 24% during the same period. This remarkable growth is largely attributed to the soaring demand for Nvidia’s highly sought-after AI chips, which are revolutionizing numerous industries that rely on intelligent machinery. BING-JHEN HONG/iStock Editorial via Getty Images As I said several times before, the first time I invested in NVIDIA Corporation (NVDA) was in late 2022. Since then, NVDA has been one of my favorite businesses to follow and continue investing

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA, MU, AMD, MRVL, GOOG, META, AMZN, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The information, opinions, and thoughts included in this article do not constitute an investment recommendation or any form of investment advice. Seeking Alpha's Disclosure: Past performance is no guarantee of future results.

No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. NVIDIA Corporation (NASDAQ: NVDA) is heading into Christmas Eve with a familiar mix of fuel and friction: a powerful AI demand narrative, a fresh policy twist on China chip exports, and the kind of... NVDA last traded around $189.21 (up about 3% from the prior close), keeping the stock near the center of the “Magnificent Seven” conversation as investors position for 2026.

[1] The big story underpinning today’s NVIDIA stock chatter is geopolitical and commercial at the same time: Nvidia’s H200 AI chip is back in play for China, but the path from approval to revenue still... licensing, Chinese regulatory decisions, and a rising chorus of lawmakers demanding tougher oversight. [2] Below is the full roundup of what’s driving NVIDIA stock on 24.12.2025, plus the latest forecasts and the key “watch next” items investors are tracking. Reuters reported this week that Nvidia has told Chinese clients it aims to begin shipping its H200 (its second-most powerful AI chip) to China before the Lunar New Year holiday in mid‑February.

The plan, according to people familiar with the discussions, is to fulfill initial orders from existing inventory—5,000 to 10,000 chip modules, equivalent to roughly 40,000 to 80,000 H200 chips. [3] That’s a meaningful number for two reasons: The semiconductor industry remains at the center of the artificial intelligence (AI)-led investment cycle, fueled by massive cloud spending, accelerating infrastructure buildouts, and a multi-year push toward advanced computing. While market sentiment has wavered at times, the long-term demand backdrop for chips tied to AI remains firmly in place. NVIDIA Corporation (NVDA) has been the defining winner of this boom, transforming itself from a graphics pioneer into the backbone of modern AI data centers.

After a historic run, however, 2025 brought a noticeable slowdown. Shares trailed several chip peers as investors grew cautious, weighed valuations, and questioned whether the AI trade had moved too far, too fast. That pause has only heightened interest at Cantor Fitzgerald. With AI-linked stocks pressured by risk-off conditions and bubble fears, the brokerage firm argues the market is losing sight of the broader opportunity. Analyst C.J. Muse believes those concerns are overdone, pointing instead to a fresh AI demand inflection taking shape.

With next-generation architectures approaching, demand visibility improving, and valuations resetting, Cantor foresees Nvidia’s current setup as increasingly attractive heading into 2026, making it “top pick.” Let’s look at it closely. Santa Clara-based Nvidia has spent decades building itself into one of the most influential technology companies on the planet. What began as a gaming graphics specialist evolved into a computing powerhouse spanning data centers, networking, automotive, and advanced software. Its CUDA platform entrenched Nvidia deeply within developer workflows, shifting the company from a component supplier to an industry standard. Today, under Jensen Huang, Nvidia stands as a dominant force with global reach and immense financial scale, currently boasting a market capitalization of nearly $4.6 trillion.

Why One Analyst Remains Cautious On Nvidia Heading Inkl

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