Nvidia Stock Alert: Brace for a Pullback, Says Top Investor

Nvidia's stock has soared 900% in the past two years, but growth has slowed to 69% YoY in the latest quarter. Despite external pressures, the company is expected to maintain strong demand for its AI accelerators due to its general-purpose capabilities and powerful software advantage. However, a top investor predicts a potential pullback, cautioning that near-term risks, such as geopolitical volatility, could temporarily stall momentum.

NVIDIA's stock has experienced remarkable growth over the past two years, surging by 900% [1]. However, recent quarters have shown a deceleration in year-over-year growth, with the latest quarter reporting a 69% increase [1]. Despite external pressures, including geopolitical volatility, the company is expected to maintain strong demand for its AI accelerators due to its general-purpose capabilities and powerful software advantage [2].

NVIDIA's total return over the past 12 months stands at 165.53%, with a year-to-date increase of 134.56% [1]. The 5-year total return is an impressive 2,894.29%, indicating significant appreciation in the stock's value [1]. This growth is driven by the company's dominance in the AI chip market, particularly its data center segment, which has seen a 73% year-over-year growth in revenue [2].

The company's CEO, Jensen Huang, has recently sold six million shares, amounting to approximately $810 million [2]. While this sale has raised concerns among investors, it is part of a regular plan for insiders to periodically sell shares, rather than a sign of trouble [2]. Huang remains optimistic about Nvidia's success, highlighting the company's early stages of AI growth and its strong demand for AI inference tasks [2].

NVIDIA's strategic partnerships, such as its collaboration with Mistral to build AI data centers in France, further solidify its position in the AI market [2]. These partnerships, combined with its powerful software ecosystem, create a significant barrier to entry for competitors [2].

However, a top investor has predicted a potential pullback, cautioning that near-term risks, such as geopolitical volatility, could temporarily stall momentum [2]. The company's ability to navigate these challenges and maintain its leadership position in the AI market will be crucial for its future growth.

References:
[1] https://www.financecharts.com/stocks/NVDA/performance/total-return
[2] https://americanbazaaronline.com/2025/06/24/jensen-huang-reveals-plans-to-offload-800-million-in-nvidia-stock/