Is Nvidia Stock Already Priced for Perfection? Huang’s Europe Tour Hit ‘Peak Narrative’

Nvidia (NVDA) closed Tuesday within spitting distance of its record high, and Wall Street barely flinched. CEO Jensen Huang was on stage Wednesday in Paris delivering a sleek, forward-looking keynote. He laid out plans for AI infrastructure across Europe and an expansion of DGX Cloud Lepton.

But for investors, it felt like déjà vu.

This is the cost of being the most celebrated company in the AI race: greatness is expected. And anything less than a moonshot feels like a letdown. Nvidia has been priced for perfection since early 2024. Now, the bar is so high that even good news can’t budge the stock.

Nvidia’s Valuation Might Have Hit ‘Peak Narrative’

Here’s the bigger issue: we may be nearing “peak narrative” on Nvidia.

Yes, demand for AI chips is still sky-high. Yes, Nvidia’s market dominance in high-performance GPUs looks unshakable. But that’s already in the stock. With a valuation topping $3.5 trillion and trading at over 40x forward earnings, Nvidia is no longer just an AI growth play, it’s a macro barometer, a liquidity sponge, and a retail obsession rolled into one.

Huang’s announcements, deals with European telecoms and continued rollout of its cloud platform, were smart and strategic. But they weren’t explosive. They didn’t break new ground or open new verticals. That’s not a knock on the company. It’s a warning about investor expectations.

Nvidia’s Grip on the AI Chip Market Won’t Last Forever

For now, Nvidia still rules the AI chip supply chain. But rivals are closing in. AMD’s (AMD) MI300X chips are gaining traction. Google (GOOGL) and Amazon (AMZN) are scaling custom silicon. And while no one matches Nvidia’s ecosystem yet, competition will bite—slowly, then suddenly.

Bottlenecks are easing and hyperscalers are starting to favor efficiency over raw firepower. That could narrow Nvidia’s monster lead, not erase it, but compress it. And when expectations are priced for perfection, even a squeeze can sting.

Nvidia’s Real Risk Is Becoming a Sentiment Stock

When fundamentals and execution align but the stock won’t budge, you’re not trading results anymore—you’re trading mood. Nvidia is nearing that threshold. It’s become part Tesla (TSLA), part Apple (AAPL), part meme.

That’s great when markets are euphoric. But sentiment is volatile. If the Fed stays tight or AI budgets pause, Nvidia could drop—not because it failed, but because it didn’t dazzle.

Overall, Nvidia is crushing execution. Jensen Huang is still the oracle of AI. But the NVDA stock is priced like the future is already here, and already profitable.

Is Nvidia Stock a Buy, Sell, or Hold?

Wall Street analysts are overwhelmingly bullish on Nvidia (NVDA). The tech giant commands a “Strong Buy” consensus rating. This strong outlook stems from 40 analyst ratings over the past three months. A dominant 35 analysts recommend a Buy for NVDA shares, with four advising a Hold, and only one suggesting a Sell. The average price target for Nvidia sits at $172.36, forecasting a substantial 19.73% upside from its last price of $143.96.

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