Raymond James analyst Simon Leopold points out four main reasons for NVIDIA's flat stock performance this year
Raymond James analyst Simon Leopold noted in a new report that NVIDIA's stock performance has been flat year-to-date, up only 14% (compared to the S&P 500's 12% gain over the same period), and has fallen after earnings releases in six of the past eight quarters, including the most recent four. Leopold listed four main reasons for this: market positioning in NVIDIA may be saturated; concerns that the AI boom could turn into a bust; the law of large numbers leading to slower growth; and worries about growth and profit margins peaking. Despite this, Leopold maintained a "Strong Buy" rating on NVIDIA stock, arguing that its valuation below the S&P 500 is illogical and predicting that growth in CPU market share will be the next catalyst.
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