NVIDIA (NASDAQ:NVDA) shares are down about 4% today, and the move looks more like a technical selling rather than any clear negative headline. After a strong run into recent highs, the stock has started to lose some steam, with a break below near-term support levels likely setting off stop-loss selling. At the same time, there is some growing caution around AI spending cycles, especially the idea that hyperscalers may pause to digest recent capex, which is pushing investors to take a more measured view in the near term even as the bigger picture remains intact.
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Trade NVDA with leverageThat cautious tone, however, contrasts with the view from top investor Oliver Rodzianko, who is ranked in the top 2% of stock experts on TipRanks.
Rodzianko still sees Nvidia as a core beneficiary of a much bigger structural shift, arguing that the company is “at the right edge of the first AI s-curve,” pushing back on the idea that the current phase marks a top. The investor believes what may look like slowing momentum is actually part of a broader pattern, where demand is “built, digested, and rebuilt as new compute waves emerge,” suggesting that periods like this are a normal part of the cycle rather than something to worry about too much.
Rodzianko also frames AI demand in a way that supports a sustained growth outlook, noting that “AI converts labor into compute,” which shifts corporate spending toward GPUs and cloud infrastructure over time. That dynamic, he believes, creates a durable demand base, with the real risk centered on temporary digestion phases rather than any structural decline. He acknowledges that valuation may appear extended in the near term, yet maintains that “earnings compounding supports continued upside,” reinforcing his belief that the long-term trajectory remains favorable.
From a positioning standpoint, Rodzianko strikes a measured tone rather than calling for aggressive buying, explaining that while the stock may not be the ideal point to go all-in, he would “see no reason to sell here” if already holding shares. The investor adds that a sharp downturn remains a low-probability scenario, describing a collapse as “a tail risk,” while emphasizing that staying invested through the cycle is “not only intelligent… it is wise.” Looking ahead, he still sees meaningful upside potential, with his bull case pointing to roughly 20% gains over the next 12 months.
Importantly, Rodzianko dismisses one of the more common bear arguments around custom silicon, stating that it “caps excess returns, not relevance,” and reiterating that Nvidia is likely to remain central to advanced compute workloads. In his broader framework, the AI cycle does not end with a single peak but evolves through successive waves, meaning that what appears to be a slowdown today could simply mark the transition into the next phase of growth.
With that in mind, Rodzianko remains in the bullish camp, assigning NVDA a Buy rating. (To watch Rodzianko’s track record, click here)
Wall Street also continues to lean positive on Nvidia, with the stock holding a Strong Buy consensus based on 42 analyst ratings, including 40 Buys, 1 Hold, and 1 Sell. The average price target stands at $274.38, implying about 36% upside from current levels. (See NVDA stock forecast)
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.