However, some analysts expect demand for Nvidia chips to decrease over the next four to six quarters. Concerns have been raised over Nvidia's sales being concentrated among a few buyers, with Microsoft accounting for over 20% of Nvidia's second-quarter revenues last year. It's expected that Microsoft will reduce its reliance on Nvidia hardware and invest in the development of their own AI accelerator. With no clear consensus, Wall Street remains divided on Nvidia's future.
Key takeaways:
- Wall Street analysts have mixed opinions on Nvidia's rally, with some believing it's a bubble ready to burst while others see it as a continued success.
- Nvidia has been compared to Cisco Systems during the dot-com era’s boom and bust, with concerns about inflated expectations and high valuation.
- Despite these concerns, Nvidia's value has continued to grow, with its stock up more than 70% in 2024 and price targets set over $1,000.
- There are concerns about Nvidia's sales being concentrated among a few buyers, with Microsoft accounting for more than 20% of Nvidia’s second-quarter revenues last year.