We recently published Top 10 Buzzing Stocks to Watch as Analysts Predict AI-Led Bull Market Will Continue. NVIDIA Corporation (NASDAQ:NVDA) is one of the top buzzing stocks to watch.
Brad Gerstner, Altimeter Capital founder and CEO, said in a recent program on CNBC that he believes the AI demand will continue to increase and benefit major players like Nvidia. The investor believes Nvidia can “continue to compound”
“Yeah. It’s funny, 2005 I have one of the great portfolio managers of the world, Paul Reeder runs PAR Capital in Boston, and he would come into my office. I had all my public investment in Google, and Google would go up, and he would come and he’d say, well what are we going to do next? I would say buy more Google. Right, oftentimes the best ideas are your current ideas or the last ideas. When I look at NVIDIA Corp (NASDAQ:NVDA) over the course of the next three or four years, it’s going to continue to compound. Why? Because of the things we just talked about. You’ve got to build out this compute. Don’t trust, you know, just Sam Altman. If you listen to Satya Nadella, if you listen to Sundar, if you listen to Hock Tan, if you listen to any, they will all tell you the same thing — we are going to be compute constrained for the next several years.”
Brad Gerstner of Altimeter Capital With its strong position in the data center market and rising demand, Nvidia is likely to keep growing, though not at the same pace it has in the past. The current AI boom cycle stems from spending by major tech companies, and Nvidia is the biggest beneficiary of this spending. In Q2 FY2026, three direct customers accounted for 23%, 19%, and 14% of NVDA’s accounts receivable. Almost all of the company’s revenue comes from AI-related infrastructure spending. In the latest quarter, $41.3 billion of the $46.7 billion revenue came from these clients. The music could stop for Nvidia if these major companies decide to slow down their spending amid a lack of ROI. If investors sense a weakness in CapEx spending, and the market begins to waver, NVDA stock price would be the first to see its impact.
Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its third quarter 2025 investor letter:
“In early August we initiated positions in both NVIDIA Corporation (NASDAQ:NVDA) and Broadcom, after having not owned either company over the past 2½ years following the initial wave of enthusiasm around Gen AI. While we have long admired both companies, their highly cyclical business models have made it extremely difficult to forecast future earnings growth with any degree of conviction. Given our approach of seeking durable and persistent earnings growth that compounds over long holding periods, our concern in holding either was that we would be forced to endure a punishing downcycle within our typical holding period – there is very little room that in a concentrated portfolio of 20-30 companies. In fact, pre ChatGPT, NVIDIA had two punishing down cycles over the preceding five years.
