Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “Nvidia bears the weight of the world but, like Atlas, it’s standing firm under that towering mountain of expectations.
“Third quarter results delivered the goods and then some, a 4 per cent beat on the top and bottom line came with a side of more good news in the form of a monster $65 billion revenue guide for the fourth quarter.
“While AI valuations are dominating the news feeds, Nvidia is going about its business in style.
“There are certainly pockets of the AI space where valuations needed to take a breather, but Nvidia is not in that camp.
“In fact, while shares have performed well this year, the valuation has gotten more attractive as earnings growth has raced ahead.
“Looking ahead to next year, demand isn’t in question, Nvidia already has a massive backlog of orders. What’s new is that its market dominance is facing scrutiny.
“Key customers are exploring viable alternatives, at least on paper, as they seek faster compute and diversification away from a single supplier. The real question is how those alternatives stack up.
“Designs and promises of similar performance are one thing; track record at scale is another, and no one matches Nvidia there.
“Its breadth remains underrated: a full data center business spanning chips, software, networking, and more.
“Even if rivals can offer parts of the stack, Nvidia’s fully integrated solution will be hard to beat.”
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