Nvidia stock faces mixed outlook as AI demand stabilizes

Nvidia has seen significant stock growth over the past two years, driven by high demand for its graphics processing units (GPUs) in the AI sector. However, some analysts question whether this demand can be sustained, as sales growth is beginning to slow. Concerns exist about a potential drop in sales once companies meet their AI computing needs. Nvidia's revenue has surged, but the cyclical nature of the chip industry raises doubts about long-term stability if AI demand decreases. On the other hand, Nvidia's upcoming technology and the natural replacement cycle for GPUs may support continued demand. New, more efficient chips are expected to drive upgrades, suggesting that Nvidia's growth could persist beyond 2026.