Nvidia, a leading AI market darling, is facing a “soul-searching moment” as its stock price struggles despite promising growth prospects. The company’s Teflon-like stock may be losing momentum, but experts believe it will bounce back.
Gerber Kawasaki Wealth and Investment Management president Ross Gerber sees Nvidia entering its “next leg” of growth, driven by rapid global buildouts of artificial intelligence infrastructure powered by the company’s leading-edge chips. Despite being not a cheap stock, Gerber believes Nvidia’s monopoly position in the chip business makes it an attractive investment.
Nvidia has attracted $30 billion in retail investor inflows this year, making it the most popular stock among retail investors in 2024. However, some traders have sold their shares amid concerns over execution issues and China exposure.
Analyst Vivek Arya at Bank of America notes that Nvidia’s Blackwell AI chip has been a challenge to adopt, unnerving bulls. Despite these challenges, Gerber remains optimistic about the company’s future, saying it needs to be part of any investor’s portfolio alongside Apple and Microsoft.
Source: https://finance.yahoo.com/news/nvidia-may-be-entering-a-limitless-era-investor-203859004.html