The stock’s sluggishness in the second half is a reflection of the extremely bullish expectations that were priced in during the initial craze for AI-related stocks. But now, some are cautioning that Nvidia’s current growth trajectory isn’t sustainable over the long term, especially in an industry notorious for its boom-to-bust cycles.
Nvidia Corp’s banner year — which saw the shares more than triple in value amid a frenzy for artificial intelligence — is unlikely to be repeated.
That’s the message from the chipmaker’s last two earnings reports, which saw the shares barely budge even as profit and sales forecasts raced past sky-high expectations. And while Wall Street is still overwhelmingly positive on the stock, analysts only see 36% upside over the next 12 months — a nice return, but significantly less than in 2023.
