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Nvidia might not do so well next year

by on17 May 2024

Analysts warn of long term nose-dive

While the cocaine nose jobs of Wall Street expect Nvidia to clean up making AI chips, there is a growing number of them who are less certain.

DA Davidson analyst Gil Luria warned that Nvidia's shares cannot continue to rise indefinitely, and the semiconductor giant is likely to face challenges as the demand for its GPUs decreases.

Luria told Bloomberg that Nvidia is not expected to experience a significant downturn in the short term. He anticipates that the company's profits for the last quarter will be "fantastic," forecasting revenues exceeding $25 billion.

However, he warns that a long-term decline for the chip manufacturer is unavoidable due to increasing competition in the coming years, including from its own clientele.

"We're not as optimistic as others because we're looking ahead. What will happen next year? What about 2026? There's growing evidence that this trend cannot persist," Luria stated.

"When a company garners such substantial profits from the market, competitors inevitably emerge, and for Nvidia, they are arising from within its customer base."

Last modified on 17 May 2024
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