Nvidia Stock Hits Record High Ahead of CEO's CES Keynote Speech

The anticipation surrounding Nvidia (NVDA) has been building up, with its stock reaching record highs in the days leading up to CEO Jensen Huang's keynote speech at the 2025 Consumer Electronics Show (CES). D.A. Davidson head of technology research Gil Luria breaks down the chipmaker's stock movements during the trading day and shares his thoughts on why he considers himself the "least bullish" Wall Street analyst covering Nvidia.

Why Luria Considers Himself the Least Bullish Analyst

Luria, who has been following Nvidia's trajectory closely, believes that the current market situation is similar to previous cycles. He notes that the stock price has reached a peak, and for it to remain attractive from here, investors would need to anticipate significant growth in the coming years.

A Cycle Just Like Any Other

According to Luria, the current cycle is not an exception to this rule. He explains that Nvidia's stock performance can be attributed to various factors, including its dominance in the field of artificial intelligence and the company's ability to adapt to emerging technologies.

Hyperscalers' Spending Normalization

One of the key points Luria makes is that hyperscalers like Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG, GOOGL) are unlikely to continue spending at their current monumental rate. He believes that as these companies normalize their capital expenditure, Nvidia's growth may be impacted.

Sovereign AI Customers: A Replacement for Big Tech Spending?

Luria also discusses the potential impact of sovereign artificial intelligence customers on Nvidia's revenue. While he acknowledges the significance of this emerging market, he doubts that it will make up for any normalization of Big Tech capital spending.

Nvidia's Future Growth Prospects

To be attractive from here, investors would need to believe that Nvidia can sustain a growth rate of 15-20% over the next two years. However, Luria is skeptical about this possibility, given the current market trends and the company's historical performance.

The Reason Behind Luria's Skepticism

Luria attributes his skepticism to his assessment of the current cycle, which he believes may be reaching its peak. He emphasizes that Nvidia's stock price has reached a record high, and for it to remain attractive from here, investors would need to anticipate significant growth in the coming years.

Conclusion

Nvidia's stock performance is closely watched by analysts, with Luria being one of the most bearish on the Street. His skepticism about the company's future growth prospects highlights the importance of carefully assessing market trends and understanding the factors that drive Nvidia's success. As the company prepares to showcase its latest innovations at CES, investors will be watching closely to see if Luria's predictions come to fruition.

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