Nvidia's Sole Bearish Call: Seaport Research Analyst Jay Goldberg

Nvidia shares have reached a record high, but Seaport Research Partners Analyst Jay Goldberg has the only sell call on Wall Street. Goldberg spoke with Bloomberg's Romaine Bostick and Katie Greifeld on "The Close" about his concerns. He believes Nvidia's shares are overvalued and warns investors to be cautious.

Nvidia (NASDAQ: NVDA) has made history by becoming the first publicly traded company to reach a $4 trillion market capitalization. This milestone, achieved on Wednesday, July 1, 2025, has sparked a mix of optimism and caution among investors. While many see the growth potential in Nvidia's AI-focused business, some analysts have raised concerns about the stock's valuation.

Nvidia's stock has been on an upward trajectory, driven by strong demand for its graphics processing units (GPUs) in the AI and data center sectors. The company's market cap has nearly doubled since early April, fueled by the generative AI hype that started with the introduction of OpenAI's ChatGPT in 2022 [3].

However, not all analysts are bullish on Nvidia. Seaport Research Partners Analyst Jay Goldberg, the only sell call on Wall Street, expressed his concerns about the stock's valuation. Speaking with Bloomberg's Romaine Bostick and Katie Greifeld on "The Close," Goldberg argued that Nvidia's shares are overvalued and advised investors to be cautious [1].

Goldberg's concerns are not unfounded. Nvidia's forward price-to-earnings ratio of 28 suggests that the stock is reasonably priced for its growth potential. However, the company faces significant risks, including new competition in the AI-chip market and regulatory challenges, particularly in China [2].

As Nvidia prepares to report its second-quarter earnings on August 27, investors will be closely watching the company's performance. If Nvidia meets or exceeds its internal and Wall Street expectations, the stock is likely to soar higher. However, any disappointing news could lead to a pullback.

In conclusion, while Nvidia's record high market cap is a significant milestone, investors should approach the stock with caution. The company's growth potential is undeniable, but so are the risks. As always, it's essential to conduct thorough research and consider your investment strategy before making any decisions.

References:
[1] https://www.aol.com/nvidia-first-4-trillion-company-110000193.html
[2] https://www.benzinga.com/markets/large-cap/25/07/46377891/wall-street-hits-record-highs-as-nvidia-tops-4-trillion-trump-ramps-up-trade-tensions-this-week-in-markets
[3] https://sg.finance.yahoo.com/news/nvidia-stock-eyes-more-gains-after-chipmaker-becomes-first-company-to-reach-4-trillion-market-value-141526893.html