Nvidia's Risk-Reward Proposition Is Much Less Favorable, According to 1 Wall Street Analyst

Motley Fool
2025.03.02 17:02
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Nvidia's stock rating has been downgraded from buy to hold by Summit Insights analyst Kinngai Chan, citing concerns over potential deceleration in growth as GPU supply catches up with demand. Despite expected strong earnings, Chan warns of a larger margin contraction due to increased production of next-gen chips and competition from more efficient AI training methods. Additionally, potential risks from stricter export controls under the Trump administration add to the caution surrounding Nvidia and other high-valued AI stocks.