Luria has warned of a long-term decline for Nvidia stock for months, despite the company's recent record $26 billion revenue in the first quarter. He plans to assign a "sell" rating on the stock as soon as Nvidia's top customers start to pull back. Despite Luria's warnings, investors remain bullish, with NVDA shares reaching an all-time high after reporting first-quarter results.
Key takeaways:
- DA Davidson analyst Gil Luria predicts a decline of as much as 20% in Nvidia stock in the next few years due to anticipated lower demand for Nvidia's GPUs and increased competition.
- Luria estimates that NVDA shares could drop to around $900 by 2026, which implies around a 14% decline from its current levels.
- Nvidia's biggest customers, including Meta, Alphabet, and Amazon, are already working on their own AI chips or investing in other partners, which could reduce their dependency on Nvidia over time.
- Luria plans to assign a 'sell' rating on the stock as soon as Nvidia's top customers, including Amazon, Alphabet, Meta, and Tesla, start to pull back.