In the bull case, demand for AI is widening from training to deployment, with CUDA software enabling Nvidia chips to handle both training and inference, and management aiming for roughly 70% revenue growth in fiscal 2028, with near-100% growth possible if supply lines meet demand.

Another bullish view notes AI computing expanding from training to running models, Nvidia targeting about 70% revenue growth in fiscal 2028, supported by liquidity and risk management through lending partnerships, customer guarantees, and high revenue per gigawatt of data-center capacity.

Nvidia recently announced a record increase to its share buyback program, signaling buoyant confidence in the stock.

Nvidia faces financing risks for customers as data-center spending climbs, potential Rubin chip ramp delays due to memory shortages, and competition from AMD and cloud providers building in-house chips or partnering with Broadcom.

To mitigate financing risk, Nvidia has backed large lenders like Goldman Sachs, Blackstone, and Apollo to support customer data-center purchases, offering to cover as much as 25% of losses if chips decline in value, with revenue per gigawatt rising with each chip generation.

In the bear case, Nvidia’s gross margin outlook for fiscal 2028 was trimmed to about 72–73% from around 75% due to higher memory prices, and Rubin’s contribution to data-center revenue may be limited this quarter with ramp possibly slipping into 2027 amid memory shortages and potential delayed sales.

Further bear considerations note that margin pressure persists if memory prices stay high, and customer credit or demand could strain if cloud cash flows deteriorate.

Nvidia has broken out to record highs after a stagnant period, with investors like Ken Fisher highly bullish, as Fisher Asset Management held about $18.2 billion in Nvidia shares (about 5.42% of its portfolio) as of Q2.

Fisher Asset Management, Nvidia’s largest hedge fund holder in Q2, increased its stake by around 3% amid strong AI-related demand.

The stock’s momentum has been driven by robust demand for AI-related computing, lifting Nvidia to record levels after a flat spell.

Valuation sits around a forward P/E of 25.7, modestly above the sector median and below Nvidia’s five-year average, with expected EPS growth near 95% in fiscal 2027 and about 70% in fiscal 2028, and a PEG around 0.49 suggesting undervaluation if forecasts materialize.

Customer risk remains: major cloud players faced cash burn and rising debt in Q2, with their cash generation likely to only partially cover data-center spending through 2028, and Nvidia’s guarantees and financing support mean demand could be stressed if a large customer defaults.