Reported 12 months ago
Despite Nvidia's attractiveness due to its 10-for-1 stock split and AI industry exposure, there are three key risks to consider. Firstly, potentially unsustainable margins due to high gross profit. Secondly, the consumer-facing AI industry's lack of profitability. Lastly, poor diversification as Nvidia heavily relies on its data center business. As a result, while Nvidia remains a long-term AI industry bet, the stock is downgraded to hold status, signaling near-term risks to watch out for.
Source: YAHOO