Is Nvidia a great buy today, or a stock to avoid?… walking through bull/bear cases from Louis and Eric… when do we buy back in?… Luke Lango’s tactical advice
In the wake of some painful action on Wall Street last week, millions of investors have one question in mind…
Is Nvidia (NVDA) the one stock they can’t afford not to own – or the one they should be most afraid of owning?
Though headlines continue to celebrate Nvidia’s breathtaking financial results and its central role in the AI revolution, is this still where investors want to trust their money today?
Let’s wrestle with the answer.
Stepping back, here at InvestorPlace, we’re proud to feature some of the brightest, most successful analysts in our industry. And part of what makes our work valuable to readers is that our experts don’t always agree. They look at the same company, the same data, the same macro environment – and sometimes reach different conclusions.
That’s the case with Nvidia.
Two of our most respected analysts – Louis Navellier of Growth Investor, and Eric Fry of Fry’s Investment Report – agree that Nvidia is a phenomenal business run by world-class leadership. But they disagree on whether the stock is a “buy” today.
Let’s explore why, and what it means they’re doing differently in their portfolios.
Let’s jump in with Louis…
The Bull Case: Nvidia is the market’s new center of gravity
For legendary investor Louis Navellier, Nvidia is no longer just a great tech company – it’s the new market anchor.
And Louis speaks from experience. He recommended Nvidia to his Growth Investor subscribers back in 2019 – long before the AI boom – and they’re now sitting on gains of more than 4,000%.
But even after that return, Louis sees Nvidia as a once-in-a-generation investment with leadership akin to Apple under Steve Jobs or Berkshire Hathaway under Warren Buffett. He says that CEO Jensen Huang has become the defining voice of this era of innovation:
When Jensen speaks, the AI world listens… and so does Wall Street.
Meanwhile, the company’s most recent earnings were a reminder that AI demand isn’t plateauing – it’s accelerating.
Here’s Louis:
NVIDIA delivered another outstanding quarter – one that should put to rest any speculation about a slowdown in AI demand.
The numbers certainly back him up. As we covered in the Digest last week, Nvidia posted:
- $57 billion in quarterly revenue (up 62% year over year)
- $51.2 billion from data centers alone
- Record visibility, with $500 billion in booked orders for 2025–2026
- Blackwell GPUs and systems effectively sold out
Plus, Louis sees something deeper happening beneath the headlines. Wall Street may debate margins or guidance language, but the global AI buildout – across cloud computing, frontier model developers, hyperscalers, and enterprise – is still in its early innings.
He highlights the commitments piling up across the ecosystem, including the massive multi-billion-dollar agreements with Microsoft and Anthropic, as well as OpenAI’s eye-popping spending plans. He concludes:
AI demand isn’t moderating – it’s broadening… and it highlights just how early we still are in this buildout.
So, for Louis, Nvidia isn’t close to reaching its peak. The AI economy is just getting started, and Nvidia remains its backbone.
Bottom line: For investors who believe AI is still in its adolescence, Nvidia remains a compelling core holding.
Now, for the other side of the trade…
The Bear Case: A great company doesn’t always make a great investment
Eric doesn’t dispute Nvidia’s greatness. Instead, his focus is on valuation and risk.
He begins by acknowledging Nvidia’s success:
Now, I am not here to claim that Nvidia is a terrible stock. It’s not. It’s been a great stock. And it remains a great company run by great people.
But he cautions that the “easy money” may already be behind us.
He points to the rapid AI arms race – hundreds of billions in spending from Big Tech companies to compete in AI chips, infrastructure, and model development. That wave of capital, he argues, raises risks for Nvidia’s margins and future profitability:
In October 2024, Nvidia had a 76.4% gross margin. Now, it’s down to 73.4%.
At the same time, Nvidia faces the growing threat of customers becoming competitors.
Google, Apple, and Meta are all accelerating development of their own chips. These companies don’t just want to control their compute – they want to reduce dependency on Nvidia’s premium-priced hardware.
Here’s Eric:
All of these chips were created to reduce dependency on Nvidia, which could eventually get cut out of the picture altogether.
Finally, he highlights marquee investors like Peter Thiel (via his hedge fund), Michael Burry (of “The Big Short” fame), and SoftBank, which are exiting or betting against the stock – moves he interprets as early warnings that risk is rising.
Bottom line: Eric isn’t calling for Nvidia’s downfall. He believes it’s priced for perfection in a market where perfection rarely lasts. As a result, he sees better opportunities elsewhere.
How Nvidia is a symbol for the market at large
This Nvidia debate captures something larger happening across the market right now.
Today, many investors believe we’re in the late innings of a historic bull run. Whether that’s true or not, many beloved stocks are priced for perfection – and even if this bull has many years of life left, great companies can become risky bets if valuations run too far ahead of fundamentals.
So, the question isn’t whether AI is transformative. Both Louis and Eric agree it is. The question is where the next wave of wealth creation will flow – and whether investors are better served by riding the giants higher or positioning in the opportunities flying under the radar.
And that dovetails into action steps…
So, what’s the right move today for you and your portfolio?
Despite their different views on Nvidia’s stock today, both Louis and Eric are bullish on AI – viewing it as one of the greatest wealth-creating forces of our lifetimes.
But let’s dig deeper and look at exactly how they’re acting on this.
For Louis, Nvidia remains a core long-term holding. It’s a “Buy.” But he’s also looking beyond the AI darling…
His latest research finds that some of the most explosive gains ahead will come from the under-the-radar companies building the AI infrastructure – systems, software, data center technology, and industrial capacity powering what he calls the coming Economic Singularity.
He has recently highlighted a group of these lesser-known names that he believes are positioned to benefit the most. You can learn more about them right here.
Eric agrees that AI is transformative – but he believes many mega-cap AI stocks – not just Nvidia, but also Amazon (AMZN) and Tesla (TSLA) – are now too richly priced for comfort (disclaimer: I own AMZN).
He’s redirecting capital into earlier-stage, undervalued companies that can benefit from the AI wave without the valuation risk that comes with trillion-dollar giants.
He recently released a “Sell This, Buy That” research package that explains his “sell” recommendation for Nvidia, Amazon, Tesla, and reveals what he’s buying instead. He gives away three recommendations – free of charge. You can access it right now, right here.
At the end of the day, Nvidia remains one of the most important companies in the world -but whether it’s the right stock for you depends on how you want to capture the next decade of AI-driven growth.
What matters most is choosing the strategy that aligns with your risk tolerance, your time horizon, and the type of opportunities you believe will lead the next wave of innovation.
Now, both Louis and Eric make compelling cases. But for readers wondering about timing – whether to hold, add, or reduce exposure today – our technology expert Luke Lango offers tactical guidance for what to do today…
Is this a “buy,” “sell,” or “wait” moment?
I didn’t get to cover Thursday’s shocking market reversal in Friday’s Digest – we featured Luke’s deep dive on Nvidia’s results and AI opportunities instead.
Fortunately, my co-Digest-writer and our Editor in Chief, Luis Hernandez, delivered a strong roundup of our analysts’ takeaways on Saturday. If you missed that issue, you can find it here.
But let’s zero in on the key tactical question right now…
Is this a “buy back in” moment? After all, as I write on Monday, the markets are up, though it’s an unequal performance.
While the Dow is barely higher, the Nasdaq is up almost 2%.
What’s the right move?
Here’s Luke:
Stay invested — but don’t get cute trying to bottom-fish.
Technical support is nearby: the S&P 500 is down 5% from highs, sitting on its 100-day moving average, RSI is at 36, and the VIX has spiked above 25. Those are textbook bottoming conditions.
But — and this is key — don’t buy dips. Buy bounces.
We need confirmation: a hold of support + a catalyst.
Nvidia earnings were supposed to be that catalyst. They weren’t. The next one arrives in three weeks at the December FOMC meeting.
Zooming out, last Friday gave us our first clear “hold of support,” as Luke described. That strength is continuing today. But with Luke pointing to the FOMC meeting as the next catalyst, there’s no reason to rush back in.
In the meantime, we can expect both bulls and bears to probe the market’s resistance and support levels in the coming days. So, avoid overreacting to these tests – don’t turn overly bearish if we get another sharp downdraft…or overly bullish if we see a vigorous bounce.
Steady, disciplined positioning remains the name of the game right now.
Here’s Luke’s bottom line:
Be patient. The AI Boom is alive and well.
AI stocks will bounce. But don’t try to catch the falling knife.
Keep your buy list tight. Keep your powder dry. And wait for the market to show you it’s ready to turn.
As we wrap up, here’s a signal supporting Luke’s take
Luke’s call for patience is backed by something worth watching…
Despite the selling pressure since late October, fund managers are holding historically low cash levels – a warning sign that’s been accurate 20 out of 20 times since 2002.
From Fortune, last week:
Fund managers are currently running extremely low cash levels, dropping to 3.7%.
Historically, cash levels at or below 4.0% function as a “sell signal” for global equities.
BofA notes that this low cash level has occurred 20 times since 2002, and on every occasion, stocks subsequently fell in the following one to three months.
The BofA report suggested that market “froth” may correct further without a December rate cut from the Federal Reserve.
Here’s a chart showing how depleted cash levels are…
Whether you view it as dry powder for future bargains or a buffer against downside risk, cash gives you options.
So, do you have enough?
Coming full circle…
The question we opened with – whether Nvidia is a must-own or a must-avoid – doesn’t come with a simple answer. It ultimately depends on your strategy, your time horizon, and how you want to participate in the AI revolution.
What’s clear, however, is that Louis and Eric both agree on one thing…
AI is transformative, and your portfolio should reflect that reality – whether or not you choose to tie your gains directly to Nvidia at this stage.
We’ll continue monitoring both perspectives – along with the timing of Luke’s greenlight to wade back into the market – here in the Digest.
Have a good evening,
Jeff Remsburg
