Nvidia Faces Investor Caution Despite Strong AI Demand

Concerns about future growth, margin pressures, and market sentiment weigh on Nvidia's stock performance after earnings report.

Nvidia's stock declined over 15% last week despite reporting better-than-expected Q4 earnings and strong AI chip demand.
Analysts express concerns about potential deceleration in growth by late fiscal 2026 as GPU supply meets demand and hyperscalers scrutinize AI investment returns.
Profit margins are expected to narrow in the near term due to ramped-up production of next-generation Blackwell chips, but Nvidia forecasts improvement later in the year.
Broader market sentiment, influenced by fears of economic slowdown and higher-for-longer interest rates, has contributed to bearish investor outlooks on tech stocks, including Nvidia.
While Nvidia remains a dominant player in AI, some analysts suggest its recent stock valuation may already reflect much of its growth potential.