Analyst on NVIDIA (NVDA): 'Eventually, We Will Hit a Wall'

We recently published 10 Stocks Wall Street is Watching Heading into October. NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Wall Street is watching.

Chris Rolland from Susquehanna said during a program on CNBC last month that Nvidia’s growth will eventually slow down and hit a “wall.” However, the analyst remains bullish on the stock and praised the company’s recent quarter numbers.

“I think eventually we will hit some sort of a wall when it comes to this deceleration. I don’t know if it’s next year, but eventually we’re going to have a flat year and everyone’s going to freak out and think that the P multiple might even be too high. It’s been a meteoric rise. I’m not getting off the train just yet. There’s still a lot of growth here. Whether you’re talking about hyperscale capex, we’ve seen incredible improvement, but there’s probably still another 20 or 30% to go there over the next few years. We have sovereign ahead of us. We have China ahead of us. There’s still some opportunity here.”

The current AI boom cycle stems from spending by major tech companies, and Nvidia is the biggest beneficiary of this spending. In Q2 FY2026, three direct customers accounted for 23%, 19%, and 14% of NVDA’s accounts receivable. Almost all of the company's revenue comes from AI-related infrastructure spending. In the latest quarter, $41.3 billion of the $46.7 billion revenue came from these clients. The music could stop for Nvidia if these major companies decide to slow down their spending amid a lack of ROI. If investors sense a weakness in CapEx spending, and the market begins to waver, NVDA stock price would be the first to see its impact.  

Baird Chautauqua International and Global Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) reported first quarter results that were extremely solid. The company took a write-down on China-specific datacenter products and flushed out any future China contributions from their guidance, following the new export restrictions introduced in April. Demand commentary ex China was extremely encouraging—Nvidia is outgrowing expectations despite supply constraints and outgrowing competing ASIC products by a large margin. We have been underweight Nvidia relative to the benchmark, which was up 46% in the quarter, given our short-to medium-term concerns that the feverish AI datacenter build may be resulting in overcapacity, which has not come to bear.

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.