'Time to Take Cover,' Says Top Investor About Nvidia Stock

As the saying goes, with success comes scrutiny. While Nvidia (NASDAQ:NVDA) remains the central force in the AI boom, the conversation on Wall Street is shifting. The focus is no longer just on growth, but on how much of that optimism is already embedded in valuations, whether AI spending can sustain its current pace, and where the line lies between durable demand and bubble-like behavior.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential On the surface, the numbers still look hard to argue with. AI investment keeps ramping, hyperscalers are pouring in capital at a staggering scale, and Nvidia CEO Jensen Huang has floated the idea that AI infrastructure spending could reach $4 trillion by the end of the decade. That kind of outlook makes it easy to see why the long-term story still resonates. And yet, there's no denying that the AI bubble fears are front and center, and many investors are openly worried that the spending bonanza is shaping the contours for a crisis. Indeed, some are even spotting the growing similarities with the dot-com bubble from the turn of the century, when sky-high valuations eventually crashed and burned. That unease has begun to show up in Nvidia's share price, with the stock down nearly 13% from its November high. Against that backdrop, even previously bullish investors are turning skittish, and top investor Oliver Rodzianko is among them. "Optimism without limits can be as dangerous as pessimism without sunlight," opines the 5-star investor, who is among the top 1% of stock pros covered by TipRanks. Rodzianko is convinced that the AI-driven optimism has gone too far, and predicts that a correction is afoot. After all, the spending simply cannot last forever, asserts the investor, who foresees a base case when capex stabilizes at lower growth rates by 2028. Because markets tend to price equities roughly a year ahead, Rodzianko expects valuation pressure and multiple compression to surface well before that slowdown becomes obvious in the data. As he puts it, "The 'great correction of 2027' is only a year away." The investor is therefore planning to decrease his AI positions in the first part of next year, while already taking steps to limit his exposure to Nvidia. "Maybe Nvidia will pull off a miracle and deliver logarithmic growth, but I'm not risking my career on it," concludes Rodzianko, who is downgrading NVDA to a Hold (i.e., Neutral) rating. (To watch Rodzianko's track record, click here) That's an ocean away from the vast majority of Wall Street analysts. With 40 Buys and just one Hold and Sell, each, NVDA boasts a Strong Buy consensus rating. Its 12-month average price target of $260 implies potential upside of ~44% in the year ahead. (See NVDA stock forecast)