Nvidia (NVDA) received a rare sell rating from Seaport Global Securities on Wednesday, as analyst Jay Goldberg warned that the explosive growth tied to artificial intelligence may have already been fully priced in.
“It’s likely that AI budgets slow in 2026,” Goldberg wrote, noting that Nvidia’s top customers — including Microsoft, Amazon, Meta, and Alphabet — are increasingly developing their own chips, potentially eating into Nvidia’s long-term dominance.
Stock Performance and Analyst Sentiment
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Nvidia shares fell 2.3% Wednesday, dragged down further by weak preliminary earnings from Super Micro Computer (SMCI).
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The stock is now down over 20% year-to-date, underperforming the PHLX Semiconductor Index (down 17%).
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Seaport’s sell call is the only bearish rating among major analysts, with 88% still rating NVDA a Buy and 11% Hold.
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Goldberg set a $100 price target, the lowest on Wall Street, versus the current ~$106 share price. The average 12-month target across analysts sits around $162, suggesting 50% upside from here.
AI Spending Concerns Emerge
While Nvidia continues to benefit from the AI infrastructure boom, Seaport notes signs of AI spending fatigue:
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Microsoft has paused several global data center builds.
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Amazon Web Services (AWS) reportedly delayed some leasing commitments, raising questions about sustained AI infrastructure growth.
Key Takeaways:
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Seaport Global issues rare Nvidia sell rating, citing peaking AI demand.
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AI chip growth faces risk as tech giants bring chip design in-house.
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$100 price target is the lowest on Wall Street, signaling limited short-term upside.
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Nvidia underperforms semiconductors in 2025 YTD performance.
