Nvidia’s (NVDA) strong Q3 results once again showed why it remains a leader in the AI boom. Revenue surged, demand for its AI chips remains exceptionally strong, and most major Wall Street firms continue to raise their price targets. Nearly every analyst now rates the stock a Buy. However, despite the excitement, one analyst remains unconvinced. Notably, Jay Goldberg from Seaport Global maintains a Sell rating on Nvidia, highlighting risks that many bullish investors may be overlooking.
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For context, Nvidia reported adjusted earnings of $1.30 per share in Q3 FY26, marking a 60% year-over-year increase. Meanwhile, revenue grew 62% to $57 billion.
Here’s Why Goldberg Is Bearish on NVDA
After Nvidia reported its Q3 earnings, Goldberg joined a podcast hosted by The Information and restated his bearish view on NVDA stock with a Sell rating and a $140 price target. During the conversation, he noted growing signs that demand may be slowing. Goldberg pointed to Nvidia’s financing loop, where the company not only sells chips but also helps customers fund and use computing capacity. He believes this model may be showing strain.
Overall, Goldberg acknowledged that Nvidia delivered a solid quarter with upbeat guidance. However, he doesn’t believe the results are strong enough to ease concerns about broader tech challenges. He also questioned how long companies can continue spending billions on Nvidia’s chips at this pace.
He said the chipmaker is already sold out for the rest of this year and likely next year, which makes it hard to see where any upside surprises could come from.
Goldberg Flags Nvidia’s Heavy Dependence on OpenAI
Goldberg noted that a lot of Nvidia’s future growth depends on OpenAI (PC:OPAIQ) and he questioned how reliable that dependence really is. While he acknowledged OpenAI’s strong technology, he pointed out that it’s still a startup burning through cash and planning massive spending — reportedly up to $1 trillion over the next five years.
Previously, he expressed doubt about the massive AI spending by big tech companies, which is currently fueling demand for Nvidia chips. He stated that many investors are starting to question whether all this money is actually delivering real results.
What Lies Ahead for Investors?
Nvidia continues to outperform expectations, dominates the AI chip market, and demand remains extremely strong. Most analysts still see meaningful upside as AI adoption accelerates across segments.
For bullish long-term investors, one bearish call may not be enough to shift sentiment. Nonetheless, investors may want to treat the Sell rating as a reminder to stay cautious, especially after such a massive run-up. Nvidia may still be a strong long-term story, but the risks are growing alongside expectations.
Is Nvidia a Buy or Sell Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 39 Buys, one Hold, and one Sell assigned in the last three months. At $257.26, the Nvidia average share price target implies almost 41% upside potential.
