Year-to-date, Nvidia Corporation NVDA shares have tumbled despite bullish analyst calls and a packed GTC keynote. On Wednesday, one wealth manager warned the AI trade is overcrowded and ripe for a pullback.
What Happened: On the day when Nvidia and other chip stocks declined, Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, offered a contrarian view on AI-driven tech stocks.
"I wouldn't buy tech here on the dip," Landsberg told Reuters' Lisa Bernhard, following Nvidia's GTC 2025 keynote. "We're in a trend now where the economy is slowing a bit, there's concern about tariffs, and bluntly, everybody and their brother owns these names. So what’s happened is there’s an overexposure to them."
While analysts remain bullish on Nvidia's long-term prospects—citing a robust product roadmap, AI leadership, and strong demand—Landsberg believes the short-term picture tells a different story.
He added that Nvidia CEO Jensen Huang can't simply wave his hand and just kind of get the stock to move higher, noting that macroeconomic pressures and saturation in AI-related holdings are weighing on sentiment.
Why It's Important: Landsberg's comments highlight growing caution around the AI trade, despite Nvidia’s roadmap extending through 2028 and analysts projecting long-term growth in data center spending.
"There's not really a real impetus to buy," Landsberg said, adding that when growth is slowing and tariffs are looming, there are better places to look—like Europe.
A series of announcements at the GTC AI Conference in San Jose, California did little to boost Nvidia Corp.’s stock on Tuesday, as shares fell by 3.43% during regular hours.
Since the launch of DeepSeek on Jan. 10, the chipmaker has seen its market value shrink by $420 billion.
However, JPMorgan analyst Harlan Sur believes Nvidia continues to lead in AI acceleration, staying one to two steps ahead of its competitors.
Price Action: Despite the recent decline, Nvidia’s shares have gained 30.04% over the past 12 months. On Wednesday, the stock rose 1.81%, closing at $117.52, and continued climbing 1.08% in after-hours trading to $118.79. Year-to-date, the company’s shares are down 15.03%, according to Benzinga Pro data.
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