Brad Gerstner Explains Why NVIDIA (NVDA) Will Keep Growing

We recently published Trending Analyst Calls: Top 10 Stocks. NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks analysts were recently talking about.

Altimeter Capital’s Brad Gerstner, in late August, talked about the impressive results of Nvidia on CNBC and explained why the company is benefiting from AI inference. Gerstner said at the time that the world is supply-constrained when it comes to compute.

“Think about this stat a year ago: Google per month was doing about 9 trillion tokens a month in terms of inference generation, compute generation. Today it’s 980 trillion tokens. So from 9 trillion to 980, it’s a 100x increase in a year. You have to compute in order to do that. So the world is massively supply constrained when it comes to compute. They’re 50. You know, he said yesterday the world will continue to grow at 50%. So think about this. If you grow and people ask them, are you going to grow at 50%? He said, well, I think we’re going to maintain market share. So the consensus for next year is 250 billion of data center revenue. If they grow up 50%, that’s going to be closer to 300 billion or closer to eight bucks a share, right. And $200 at eight bucks a share. You know, is about 25 times. So below market multiples in terms of PE. So here’s a company that I think is hitting on all strides.”

Nvidia’s latest deal with OpenAI and Intel, along with Oracle’s partnership with OpenAI are showing signs that companies are continuing to spend a fortune on compute, and AI demand won’t slow down anytime soon. But can NVDA shares keep gaining?

Nvidia’s Hopper Infrastructure and now Blackwell form the core of AI infrastructure for LLM training and inference. But Nvidia’s growth is slowing compared to previous quarters amid competition and capex spending limitations from major companies. In the recently reported quarter, Nvidia’s annual revenue growth came in at 56%, compared with nearly 100% YoY growth in the past.

With its strong position in the data center market and rising demand, Nvidia is likely to keep growing, though not at the same pace it has in the past. Increasing competition from major companies like Broadcom is also expected to impact Nvidia’s margins in the long term.

Nvidia recently impressed the market by signing an AI infrastructure deal with Intel. Nvidia will invest $5 billion in Intel. Jensen Huang said the deal would open up $50B in TAM for both companies in the data center and PC business.

Analysts believe the deal would allow Nvidia to take market share from AMD in the data center and PC business and diversify away from Arm-based designs.

Brown Advisory Large-Cap Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:

Information Technology was the largest detractor from relative performance during the quarter. The strategy’s underweight to NVIDIA Corporation (NASDAQ:NVDA) and not owning Broadcom (AVGO) were the two largest detractors during the period. NVIDIA (NVDA), a market leader in advanced graphics processing units, rebounded after a first quarter marked by a lower gross margin outlook, which was attributed to short-term complexities in ramping up Blackwell production, and a broad-based decline in AI infrastructure stocks. The company’s most recent quarterly earnings were modestly ahead of consensus expectations, and management expects gross margins to increase by year-end as yield and throughput on Blackwell racks continue to improve.

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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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