For a while there, it was looking like Nvidia (NASDAQ:NVDA) was off to the races. A potentially huge name as an AI stock, a potential winner in cryptocurrency stocks thanks to the GPU mining capability, and of course, its staple use in the video game stock field, Nvidia had lots of bases covered. So why did Nvidia close down just over 3% in Wednesday’s trading? Some surprising commentary hit the stock where it lived.
The first piece of news came from Citadel founder and CEO Ken Griffin, who doesn’t have much good to say about generative AI in general. At least in its current form. For now. A CNBC report featured Griffin noting, “I do think the AI community is making a terrible mistake by being full of hype on the near-term implications of generative AI.” Griffin also looked for most jobs that could be impacted by AI to be safe for now. Griffin is likely right on this front; just ask Steven A. Schwartz, a New York lawyer who used ChatGPT to generate a legal brief, only to discover, in court, that the cases the AI cited didn’t actually exist.
Meanwhile, a bit of a counter came out from Stan Druckenmiller, a billionaire investor who noted that he plans to stay with Nvidia for the long haul. Druckenmiller, the founder of the Duquesne Family Office, noted that Nvidia was something he planned to own for “…at least two or three years…and maybe longer.” Druckenmiller noted that “…unlike crypto, AI is real,” and it “…could be as transformative as the internet.”
Regardless, analysts are all in favor of Nvidia stock, particularly in the near term. It’s considered a Strong Buy by analyst consensus thanks to a whopping 32 Buy ratings against just four Hold ratings. Further, with an average price target of $449.92 per share, Nvidia offers 20.04% upside potential.
