Does Nvidia stock still have room to grow?

NVIDIA shares are in the red today, off just about 1%. Taking a breather from its most recent rally, the stock had closed higher four days in a row. The move to the upside on the back of CEO Jensen Wang, no longer selling the chipmaker stock, at least for the time being. Also, some of that optimism playing out, not only in NVIDIA, but more broadly, the AI chipmaker space. That was fueled by Micron's strong earnings report. So here to discuss what might be next for NVIDIA, we want to bring in Richard Windsor. He's Radio Free Mobile founder. Richard, it's great to have you here. So talk to me about NVIDIA. Here we are today, we're seeing a slight move lower, but we have seen this return of optimism, to say the least, surrounding NVIDIA. Where do you think the stock is headed from here? Is there much room to the upside? Well, I think it really depends on the overall macro. If you look at artificial intelligence in general, and you want to have a position in artificial intelligence, then NVIDIA is definitely one of the lowest risk ways to do that. Simply, if you compare that to other, particularly in the private markets, companies like OpenAI, where their valuations are far more stretched. Now, the question you have is over what do you think is gonna happen to the market overall? Because NVIDIA has a high beta, it's very volatile. If the market sells off, then NVIDIA is going to go down more than the rest, because it has this high beta. And that's really what I think is gonna go, certainly for the next quarter, because you're gonna have no more data points out of NVIDIA until another, at least another three months or so. And so consequently, I think it's going to go back and forth I suspect in line or amplify the signal of the market rather than anything specific to NVIDIA. Yeah, it's interesting. I'm looking at a chart right now indicating that while NVIDIA was the biggest driver of gains for the S&P in the first half of the year, now Apple has taken over that top slot. Is that a bearish signal for NVIDIA moving forward, or is it a sign of more kind of volatility in the broader market? How do you read that? Honestly, I think it's just more of a normalization. If you look at NVIDIA's year over year gains in the first half of this year, and also the degree to which the company beat expectations, it's not such a huge surprise that that was the major driver of the S&P in the first half. You look at it now, you're in a situation where very, very big growth is expected in the stock. The year over year comparisons start to become more challenging, and so obviously you're gonna see the performance of the shares come back somewhat. And I think really that's all that's going on here, because simply if you look at the outlook for Apple, which shipped a brand new product without its main feature, and the outlook for NVIDIA for the second or the fourth quarter of this year, frankly, I would be more interested in NVIDIA than I would be in Apple. So Richard, when you talk about the upside here for NVIDIA, obviously there's no, I don't think it's much of a debate right now just in terms of the dominance of their position, but I think the question is, what exactly that market share looks like five to 10 years from now? I'm curious how you see that playing out with the rise here of some of its competitors. Yeah, that's a really great question. And the reason being is on a five to 10 year horizon, there are some very serious challenges to NVIDIA's position, because really what's happening is NVIDIA at the moment, all the key decisions are made around what platform, what Silicon platform I'm gonna develop my foundation model to. That's the key decision, and NVIDIA totally controls that segment of the technology stack. In five years time, that might be very different. People may ask him different questions. So not worrying about developing to Silicon, but maybe developing to the foundation model or higher up through the technology stack where NVIDIA's current position is much weaker, and that gives its competitors a chance So long term, five to 10 years, yes, there's a challenge. Short term, two years, which frankly is more than the market really cares about. I don't think anyone is gonna get close to NVIDIA in this generation. And so I think market share two years, pretty safe.