Terry Smith, the founder of Fundsmith, has expressed doubts about Nvidia's valuation, despite its popularity and strong stock performance.
His skepticism stems from concerns about the future of artificial intelligence (AI) and whether enough consumers will be willing to pay high prices for AI products to justify the investment in AI infrastructure.
Additionally, he points out that competition in the chip manufacturing sector is intensifying, with other major companies like Amazon, Microsoft, and Oracle already developing their own chips, potentially eroding Nvidia's market share.
Smith also notes that $NVIDIA Corp(NVDA)$ significant competitors, such as AMD and Broadcom, are making strides in the AI chip market, which could pose further risks to Nvidia’s dominance.
Despite these concerns, Nvidia's stock has surged, reflecting strong market sentiment, but Smith remains cautious about its future growth amid growing competition and uncertainty in the AI space.
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