Tue Oct 28 17:40:00 UTC 2025: Summary:

The article highlights NVIDIA (NVDA) as a top AI stock, particularly appealing with potential Fed rate cuts. Deepwater Asset Management’s Gene Munster expressed optimism following CEO Jensen Huang’s remarks on strong AI demand, dismissing concerns about capital availability in the AI sector. The piece underscores NVIDIA’s dominance in the GPU market and its technological advantages. However, it acknowledges that NVIDIA’s growth is slowing due to competition and spending limitations. While recognizing NVIDIA’s potential, the article suggests that other AI stocks might offer higher returns with less risk.

News Article:

NVIDIA Still a Top AI Pick Despite Growth Slowdown, Analysts Say

[CITY, STATE] – NVIDIA (NVDA) remains a leading contender in the AI stock race, particularly as investors anticipate potential interest rate cuts by the Federal Reserve. According to a recent analysis, the company’s strong market position and technological advantages make it a compelling investment, even as growth begins to moderate.

Gene Munster, Managing Partner at Deepwater Asset Management, recently lauded NVIDIA CEO Jensen Huang’s bullish outlook on AI demand. Munster dismissed concerns about debt and capital limitations, citing continued strong investor confidence in the AI sector. “My sense is we’re not running out of organic capital,” Munster stated, highlighting the significant demand for AI investments in both public and private markets.

NVIDIA dominates the GPU market, controlling roughly 90% of a sector projected to reach a staggering $3 to $4 trillion by 2030. The company’s next-generation Rubin GPU series is slated for release in 2026.

However, the report also acknowledges a slowing growth rate for NVIDIA compared to previous quarters, with annual revenue growth in the most recent quarter at 56%, down from nearly 100% year-over-year. Factors contributing to this slowdown include increased competition and capital expenditure limitations from major companies.

Despite the growth slowdown, some analysts contend that other AI stocks may offer more attractive opportunities with higher potential returns and lower downside risk.

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