Dan Niles Says Nvidia (NVDA) Data Center Miss Should Not Be Ignored

Group 1 - NVIDIA Corporation (NASDAQ:NVDA) is facing concerns regarding a potential slowdown in AI demand, particularly highlighted by a miss in data center revenues in its latest quarterly report [1][2] - The company's annual revenue growth has slowed to 56%, compared to nearly 100% year-over-year growth in previous quarters, indicating a deceleration in growth amid increasing competition and capital expenditure limitations from major companies [3][4] - NVIDIA's data center business has become its largest revenue and profit generator, representing over 88% of total revenue in the most recent fiscal year, showcasing its strong position in the data center market [5] Group 2 - OpenAI has raised its revenue forecast for 2030 by $26 billion to $200 billion, but this increase will require an additional cash burn of $85 billion, raising questions about the sustainability of such growth [2] - The market dynamics are influenced by lower 10-year yields, which may lead to continued market growth until a significant downturn occurs, emphasizing the importance of fundamentals in investment decisions [2] - Increasing competition from companies like Broadcom is expected to impact NVIDIA's margins in the long term, suggesting a challenging environment ahead for the company [4]