NVIDIA (NVDA) Sees One Sell Rating Despite Strong Growth and Wall Street Confidence

NVIDIA Corporation (NASDAQ:NVDA) is one of the top 10 mega-cap stocks to buy according to hedge funds.. Seaport analyst Jay Goldberg remains skeptical of NVIDIA Corporation (NASDAQ:NVDA), maintaining a Sell rating and a Street-low price target of $100.

While most analysts stayed bullish after Nvidia’s Q2 Fiscal Year 2026, Goldberg flagged the company’s slowing Data Center growth as a red flag, just 6% sequentially (quarter-on-quarter), its weakest pace since the AI boom began. He also noted that Compute revenue actually declined 1%, even with the full launch of Blackwell GPUs.

Goldberg criticized Nvidia’s vague growth narratives, like “Agentic AI,” calling them more hype than substance. He also warned that U.S.-China trade issues could delay shipments, giving rivals time to catch up.

However, the rest of Wall Street remains bullish on the stock, with 47 of 65 Wall Street firms tracking it rating NVDA a Strong Buy, and 11, a Buy, while 6 rate it a Hold.

While the company’s growth rate may be decelerating, it is still growing at a ridiculous pace for a company of its size. On a year-on-year basis, the company’s revenue jumped 55.5% to $46.74 billion. However, as Goldberg pointed out, the revenue grew only 6% sequentially, which is still a robust 26.64% on an annualized basis.

The company’s margin continued to improve from the high watermark it set in Q4 of the previous fiscal year. The net margin in Q2 stood at 56.53%, beating Q4’s 56.17%. The company’s net margin for Q1 was affected by inventory write-offs in China, but was still at a healthy 42.61%. The fact that the company can charge such a high premium shows the clout it has among big tech hyperscalers.

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Disclosure: None.