NVIDIA stock stalls as four headwinds temper AI hype

NVIDIA (NVDA) has underperformed this year, up about 12–14% vs. a roughly flat S&P 500, as analysts cite four headwinds: its massive $5+ trillion market cap potentially limiting upside; creeping doubt that the AI surge will sustain; decelerating growth (the ‘law of large numbers’); and peak worries about margins. Still, bulls note a potential catalyst from expanding CPU contributions, with CPU revenue seen rising to roughly 5% of total by 2028, and earnings growth projected to stay above 20% in 2028. A Raymond James note labeled the stock Strong Buy, arguing the valuation remains below the market despite solid growth — with Nvidia set to show more at its upcoming earnings.