Analyst Explains Why He’s Selling Nvidia (NVDA) – ‘I Know It Sounds Crazy’

Core Viewpoint - Nvidia Corp (NASDAQ:NVDA) is experiencing a shift in analyst sentiment, with some suggesting it may be time to take profits due to overconcentration and slowing growth compared to previous quarters [1][3]. Group 1: Analyst Sentiment - Jeff Kilburg from KKM Financial plans to sell Nvidia shares at an all-time high of $175, citing overconcentration in the NASDAQ and a desire to take profits [1]. - As of September 18, Nvidia's stock price has decreased to $170 from around $176 on July 28, indicating a potential shift in market perception [2]. Group 2: Company Performance - Nvidia's annual revenue growth has slowed to 56%, down from nearly 100% year-over-year growth in previous quarters, reflecting increased competition and capital expenditure limitations from major companies [3]. - Despite the slowdown, Nvidia maintains a strong position in the data center market, with rising demand expected to support continued growth, albeit at a reduced pace [4]. Group 3: Competitive Landscape - Increasing competition from companies like Broadcom is anticipated to impact Nvidia's margins in the long term [4]. - Nvidia's recent quarterly earnings slightly exceeded consensus expectations, and management projects an increase in gross margins by year-end as production efficiencies improve [4].