Nvidia stock slips as analysts clash over long-term growth outlook

Nvidia shares traded down 0.2% on Friday following a 4.4% drop the previous session, as investors weighed conflicting views on the chipmaker's long-term outlook. Seaport Research Partners reiterated a sell rating with a $180 price target, while Laffer Tengler Investments CEO Nancy Tengler argued the stock could double in value over the next 5 to 10 years. Seaport analyst Jay Goldberg cited four main risks: datacenter construction limits, financial commitments, circular financing, and tensions with smaller cloud infrastructure providers. He noted that while about 55 gigawatts of datacenter capacity has been announced, the industry may struggle to build more than 30 gigawatts due to shortages of electricians, gas turbines, and grid connections. Goldberg also warned that Nvidia's commitments to secure supply chains and support datacenter builds total roughly $250 billion, excluding a Wall Street financing initiative that could grow from $500 billion to $1 trillion. Goldberg expressed concern about Nvidia's investments and loans to suppliers and customers, particularly neocloud providers like CoreWeave and Nebius, which have taken on significant debt amid uncertainty about AI infrastructure profitability. He said if neocloud demand falters, Nvidia could face reduced sales and pressured margins. Tengler countered that Nvidia could double in value even if earnings growth slows to 20% or 30%, comparing its potential trajectory to Microsoft's Azure cloud business.