Nvidia’s (NVDA) growth metrics aren’t impressing Wall Street as much as they used to be.
Nvidia reported its financial results on Wednesday, showing that the company’s profits and revenue increased more than 100% year-over-year. But this is also the company’s lowest year-over-year revenue growth of 122%, which is half the year-over-year growth that NVIDIA reported in the first two calendar quarters of 2024. It was less than
Shares were down nearly 4% Thursday afternoon.
And Gil Luria, managing director at DA Davidson, told Yahoo Finance that slowing growth is the biggest concern for the company’s stock right now, giving him a “neutral” rating on the AI giant. He said this was the reason for keeping it.
“Next year at least we’ll see slower growth and probably less revenue at some point,” Luria said.
“If you look at consensus forecasts and sales-side forecasts, it’s going to continue to grow at a very high rate, which is very difficult to justify given that NVIDIA’s revenue is other companies’ margins. be.”
Luria argued that big tech hyperscalers like Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL, GOOG) and Meta (META) will slow their spending at some point. And given that they make up the majority of Nvidia’s current AI chip sales, that will likely be a headwind for future revenue growth.
“The predictions for next year and the year after are getting pretty out of control,” Luria said.
