In a recent piece, we highlighted 10 Buzzing Tech and AI Stocks Everyone’s Talking About. Among these, NVIDIA Corp (NASDAQ:NVDA) has emerged as a focal point of discussion among analysts.
Doug Clinton, the founder and CEO of Intelligent Alpha, has made waves with his remarks on CNBC regarding the prevailing market sentiments surrounding NVIDIA Corp (NASDAQ:NVDA) following its recent $100 billion deal with OpenAI. This deal has sparked skepticism among some analysts, who likened it to “vendor financing,” where firms offer financial backing to their customers.
“If you spend two minutes on X, looking at anyone with a finance account, it feels like everybody wants to call the top. Valuations are frothy, and when they see these deals where NVIDIA is investing in what appears to be one of their most significant customers, 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. This investment serves as a reminder that we are amidst the largest infrastructure build in history. Companies like NVIDIA and OpenAI are navigating gigantic sums of money. Investing in smaller companies doesn’t significantly impact their bottom line. For NVIDIA, the only reasonable way to scale with a model builder is through an investment in OpenAI.”
With NVIDIA’s recent collaborations with OpenAI and Intel—plus Oracle’s partnership with OpenAI—the tech sector continues to pour significant resources into computational advancements, suggesting that the demand for AI will persist in the foreseeable future. Yet, the pertinent question remains: Can NVDA shares continue their upward trajectory?
NVIDIA’s Hopper and Blackwell platforms are positioned as the backbone of AI infrastructure necessary for training and inference of large language models (LLMs). However, it’s worth noting that NVIDIA’s growth has started to taper compared to previous quarters, due largely to intensified competition and capital expenditure limits among leading firms. In the latest quarterly report, NVIDIA saw an annual revenue growth of 56%, which is a decline from the near 100% growth achieved in prior years.
Despite these challenges, NVIDIA’s strong foothold in the data center market coupled with increasing demand suggests the potential for continued growth, albeit at a more measured pace than in the past. Moreover, escalating competition from formidable players like Broadcom is anticipated to affect NVIDIA’s profit margins over the long haul.
In a remarkable move, NVIDIA has inked a significant AI infrastructure agreement with Intel, committing $5 billion to the semiconductor giant. Jensen Huang, NVIDIA’s CEO, has indicated that this partnership could unlock a tremendous $50 billion total addressable market for both firms in the realms of data centers and personal computing.
According to Columbia Threadneedle Global Technology Growth Strategy in its second quarter 2025 investor letter, NVIDIA Corp (NASDAQ:NVDA) remains poised to capitalize on the shifting dynamics within the tech sector.
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