We recently published 10 Buzzing Tech and AI Stocks Everyone’s Talking About. NVIDIA Corp (NASDAQ:NVDA) is one of the stocks analysts were recently talking about.
Doug Clinton, Intelligent Alpha founder and CEO, said in a latest program on CNBC that the market perspective following NVIDIA Corp (NASDAQ:NVDA) deal with OpenAI is wrong. He was referring to analysts raising concerns over Nvidia’s $100 billion deal with OpenAI, with many describing it as vendor financing, where companies provide financial support to their customers.
“And we’ve got all this stuff on X. If you spend two minutes on X looking at anybody with a finance account, feels like everybody wants to call the top. valuations are frothy. They see these deals where NVIDIA Corp (NASDAQ:NVDA) is investing in ostensibly one of their biggest customers and they say, “We’ve seen this playbook before. This happened in the dotcom era. It has to be over.” I think that’s the wrong perspective though. I think it is a reminder that this is the biggest infrastructure build ever. And these companies like NVIDIA Corp (NASDAQ:NVDA), like OpenAI, they’re dealing with such big dollar numbers. It doesn’t move the needle if they invest in some small company. Nvidia needs to play big. the only way they can play big with a model builder is to invest in OpenAI.”
Nvidia’s latest deal with OpenAI and Intel, along with Oracle’s partnership with OpenAI are showing signs that companies are continuing to spend a fortune on compute, and AI demand won’t slow down anytime soon. But can NVDA shares keep gaining?
Nvidia’s Hopper Infrastructure and now Blackwell form the core of AI infrastructure for LLM training and inference. But Nvidia’s growth is slowing compared to previous quarters amid competition and capex spending limitations from major companies. In the recently reported quarter, Nvidia’s annual revenue growth came in at 56%, compared with nearly 100% YoY growth in the past.
With its strong position in the data center market and rising demand, Nvidia is likely to keep growing, though not at the same pace it has in the past. Increasing competition from major companies like Broadcom is also expected to impact Nvidia’s margins in the long term.
Nvidia recently impressed the market by signing an AI infrastructure deal with Intel. Nvidia will invest $5 billion in Intel. Jensen Huang said the deal would open up $50B in TAM for both companies in the data center and PC business.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:
“Shares of core holding NVIDIA Corporation (NASDAQ:NVDA) surged during the quarter, after the company reported strong quarterly results driven by very strong demand for the company’s next-generation Blackwell architecture. The new Blackwell chips deliver compelling performance improvements, with up to 30x faster inference capabilities as compared with prior generations and, importantly, are much more energy efficient. The company also proved resilient against a backdrop of increasing geopolitical tension, as sovereign deals announced in parts of the world such as the Middle East and Taiwan helped to offset headwinds that resulted from U.S. export restrictions on China sales.”
While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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