Why this analyst says Nvidia is not a stock to buy

The moment markets have been eagerly awaiting has finally arrived. Nvidia (NVDA) has released its first quarter earnings report, surpassing expectations on both revenue and profitability. D.A. Davidson Managing Director Gil Luria joins Asking for a Trend to discuss why he believes Nvidia is not a stock to buy despite its current performance.
Luria acknowledges that Nvidia's results were "great," though "it shouldn't be too surprising" given their customers forewarned about increased spending on Nvidia's products. He pointed out that tech companies are engaged in an "arms race" to acquire as much generative AI capacity as possible, creating significant demand for the semiconductor company.
However, Luria cautions that with more companies looking to rival Nvidia, "that's what you have to start thinking about for next year and the year after that." He emphasizes that these emerging competitive threats are something investors should closely monitor. For this reason, Luria says Nvidia is not currently a stock to buy: the company's "own customers" will be competing with them, leading to a revenue decline.
For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.
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[nicolasbenson]

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies... I would greatly appreciate any suggestions.

[AmithKaury]

I already own shares of PALANTIR, TSLA, NVDA and APPL as well. Sure, I don't mind having these equities sit around for a while, but I'd also like to appreciate short-term opportunities that could fetch $200, 000 or less..

[MatthewMS.]

As a longtime concentrated investor of NVDA, I immediately remember this guy as like the last bear analyst on Wall Street in March saying “hype. Target in $600s” remember kids its on you, do your homework 📚 analysts will say it all

[ryanmonti]

He has Adobe Inc. (ADBE) listed on a board behind him, Adobe is down 20% YTD.
I call BS, this dude is blowing smoke...

[jkl]

This person is not factoring in NVIDIA is doing so much work on innovation and making even faster Accelerated Computing technologies. As long as NVIDIA keeps raising the speed of computing, , the Magnificent 7 and everyone would have to keep buying and upgrading to compete in the market. It’s similar to Apple keeps selling generation after generations of iPhones. Don’t understand why this person would say what he has said…

[FEDD]

This guy will be trailing the market forever and will lose his job next year.

[youyou-dvfr]

Other semiconductor companies can’t compete with Nvdia for its advanced chip technology. What makes you think non semiconductor companies can compete w NVDIA chips.

[gunslinger]

Time to buy. When the stock becomes $100 a share, it will become much more accessible for investors. The stock will gradually rise. Same thing happened to Boeing stock multiple times.

[Ronnieleec]

this guy is wrong. there are so many more customers. also, obviously he doesn’t understand the broadening of the Nvidia product line. so he has probably been buying intel for 5*3 last several years.

[jeffrose]

Hey everyone, it's DF Gill who is shorting NVIDIA. His firm will soon go

[paulo]

Don’t listen to this guy. He has no clue but risk manager

[davidsoncl]

Northrop Grumman NOC just announced working with NVIDIA on AI. Support American military superiority and buy both.

[holysmokesturbo]

This guy is a bozo and doesn't know what he is talking about. For the past 25 years Nvidia has outperformed the market. If you want to lose money listen to this guy.

[briancase]

This guy is just wrong. There's no apparent revenue for the customers of Microsoft and etc because the models aren't fully realized. More experience with training is needed, and you can't do that without Nvidia hardware. And the faster you do it, the more chance you have to beat your competitors. Thus, nvidia hardware stays in demand, big demand, for at least two years.

[starvingbymidnight]

Basically he’s saying that reason NVIDIA wouldn’t succeed long term is that their customers are making their own chips. Apple, Disney and others pulled their content away from Netflix and yet here we are Netflix is still no 1 company for streamings.

[jimmcafee]

Data centers have huge electricity usage. Nvidia's products continue to be more and more efficient. Presently, with every iteration Nvidia saves its customers on overall cost of operation. With Hopper H100 cableing reductions was greater than the cost of their products;. H200 reduced the amount of electricity required to run Data Centers to a point where purchasing Nvidfia's GPU netted out to zero additional cost. Blackwell will come out quarter 2 and it is even more efficient. Presently, no other company can compete.with Nvidia. Data Centers use a tremendous amount of electricity. Who will supply such a demand? This is why Nvidea has a leg up on the competition and it isn't close.

[groundhog]

I don't see any of these companies replacing the need for NVDA by designing their own chips in the next 10 years.

[ToanTran-bltx]

Most of those companies' chips will probably be trash, nothing compared to Nvidia's chips. Amazon and Google smartphones are trash. Dont even get me started with Apple's electric vehicles, lol. Just because a company makes their own product, it doesn't mean it will be great.

[RZH]

My “Magnificent 7” for the last 5 to 10 years and for the long term: NVDA (largest by far), QCOM, TSM, TSLA, GOOG, GE, CRYPTO. I have been reducing NVDA on the way up, still too large a percentage, adding AMD, AVGO, MRVL, ASML, NXPI, and a lot of cash. These are my long term holdings, but cash with high interest is for the down turn. Happy investing!

[sandeepmangat-ee]

Guy is making fool of himself, first off there are hundreds of customers requiring GPUs for few hundreds to upto
Has he heard about spectrum-X
There are literally 15000-20000 generative AI startups most of which will be using Nvidia ecosystem, not to mention sovereign AI. The demand for Blackwell GPUs is through the roof for next many quarters