Nvidia (NASDAQ:NVDA) is now at the center of a market debate over whether the AI trade is beginning to lose momentum. After a powerful, multi-year run that pushed valuations across the sector to elevated levels, investors have become more sensitive to signs of slowing demand, heavy capital spending, and softer returns on AI investments. That shift in tone has been reinforced by recent moves from well-known skeptics, including Michael Burry, who has disclosed bearish positions tied to some of the market’s most visible AI beneficiaries – Nvidia among them.
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Those concerns are already showing up in Nvidia’s share price. Despite delivering a strong earnings report in November that smashed expectations, the stock has struggled to gain traction, sliding 6% since the results were released on November 19.
So, is the AI clock ticking toward midnight for Nvidia? Investor Bohdan Kucheriavyi isn’t buying all the doom and gloom.
“I continue to view Nvidia as a solid long-term investment and believe that the latest AI bubble fears have been overblown,” explains the 5-star investor.
To challenge the bubble narrative, Kucheriavyi points to the sheer scale of hyperscaler spending. Amazon and Alphabet alone are expected to pour roughly $125 billion and $93 billion into capital expenditures in 2025, with both companies signaling that those figures are likely to climb further in the year ahead.
Moreover, Kucheriavyi highlights comments from Nvidia CEO Jensen Huang and AMD CEO Dr. Lisa Su, both of whom have suggested that the global data-center build-out could approach $1 trillion over the coming years. For him, that alignment among industry leaders sends a clear message – the AI spending cycle is not winding down anytime soon.
That being said, Kucheriavyi isn’t ignoring the risks facing Nvidia, either. He acknowledges that hyperscalers could begin to clamp down on capex spending, while Nvidia’s future sales in the China market remain an unknown. For now, though, Kucheriavyi doesn’t see any signs that Nvidia is in danger of missing its estimates.
“Everything points to the fact that the AI party is not over yet,” concludes the investor, adding that he has “no plans to sell” the shares that he owns anytime soon.
No surprise here, Kucheriavyi is rating NVDA shares a Buy. (To watch Bohdan Kucheriavyi’s track record, click here)
Wall Street is also looking on the bright side. With 39 Buys – and only 1 Hold and 1 Sell apiece – NVDA boasts a Strong Buy consensus rating. Its 12-month average price target of $258.45 points to ~48% upside potential. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.