Reported 13 days ago
Terry Smith, a prominent UK fund manager, has opted to avoid Nvidia shares due to concerns over the sustainability of the company's earnings and profitability amidst the AI hype. Despite Nvidia's stock nearly tripling this year and optimism from Wall Street analysts, Smith is skeptical about the long-term viability of AI applications and the potential revenue they may generate. He argues that competition will rise if the technology proves successful, which could impact Nvidia's margins and profitability.
Source: YAHOO