Two Veteran Investors Take Different Views on Nvidia's (NVDA) Outlook

Two longtime professional investors presented bullish and bearish aspects of Nvidia's (NVDA) outlook on CNBC recently.

Jim Lebenthal called the company's fundamentals strong and suggested that its valuation was attractive, while Josh Brown indicated that the demand for the company's products could slide significantly over the longer term.

Lebenthal's Bullish Call

A partner at Verity Partners, Lebenthal stated that NVDA has been struggling recently primarily due to "technical" issues that have been triggered by fears over future macro developments.

Noting that he's looking to buy NVDA stock, Lebenthal called the company's fundamentals "very strong" and predicted that its earnings would climb 50% in 2025. The investor also suggested that the company is unlikely to be badly hurt by DeepSeek, while the valuation of NVDA stock is attractive.

Brown's Bearish Warning

Purchases of NVDA's chips have been fuelled by the large sums of money that wealth management firms have poured into AI infrastructure companies such as CoreWeave (CRWV), Brown, the co-founder and CEO of Ritholtz Wealth Management,  said. If these wealth managers are not pleased by the returns on their investments, they may put less money into AI-oriented funds going forward, causing the demand for Nvidia's newest chips to drop over the long term, Brown warned.

However, he noted that he still remains long on NVDA stock.

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as NVDA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey