Wall Street banking giant just issued this chilling warning for Nvidia investors

Core Viewpoint - A Wall Street analyst has raised concerns that Nvidia's rapid growth may not be entirely organic, suggesting that part of its sales could be driven by "circular revenue" stemming from its investments in AI startups [1][2]. Group 1: Revenue Dynamics - Nvidia's financial relationships with companies like OpenAI create a scenario where it acts as both a supplier and an investor, potentially inflating revenue figures that may seem to reflect independent customer demand [1][2]. - The reliance on Nvidia's own capital for demand, rather than external funding, could lead to uncertainty in the company's long-term growth prospects [2]. Group 2: Investment and Partnerships - Nvidia has made a significant $100 billion investment in OpenAI, which is expected to deploy at least 10 gigawatts of Nvidia systems, including millions of GPUs, to support its next-generation AI models [3]. - The growing network of AI partners, including OpenAI and Oracle, is anticipated to drive substantial demand for Nvidia's advanced chips as the AI infrastructure race intensifies [6]. Group 3: Stock Performance and Outlook - Despite the caution regarding revenue sources, the analyst raised Nvidia's stock price target from $200 to $210, maintaining a Buy rating, with shares trading at $187, reflecting a year-to-date increase of over 35% [4]. - OpenAI may require up to $75 billion in equity and debt by 2026 to fund its infrastructure, highlighting the scale of future demand for AI hardware [6].