17 Reasons To Short Nvidia To $75

Jeremy Blum9.94K FollowersFollow5ShareSavePlay(18min)CommentsSummaryNvidia Corporation faces significant risk as AI data center capex growth is likely unsustainable beyond 2026, threatening revenue and profit momentum.Thirteen structural and economic factors—including power constraints, ROI concerns, and emerging competition—suggest a slowdown in hyperscaler spending on GPUs.Major hyperscalers and industry leaders are signaling caution, with recent stock drops on capex announcements reflecting waning investor patience.I maintain a short position on NVDA with a two-year price target of $75, expecting revenue growth to stall and margins to compress by 2027. Getty Images I have written 4 articles in recent months questioning if the current AI Capex surge is sustainable. The first one, which lays out my case, is here. Notice I didn’t say AI itself is unsustainable; I expect itThis article was written byJeremy Blum9.94K FollowersFollowTipranks.com shows stock returns from my articles have averaged over 29% over a one year period. I was the Credit Manager for a mid-sized publicly traded bank and retired early in 2013 due to success in the stock market. Despite never working in the industry, I took and passed the CFA Level 1 exam. I am primarily an event driven swing trader with an average holding period of 45 days. I usually only write about stocks that are my best ideas, I have a position in, and plan to hold for 6-18 months.Analyst’s Disclosure:I/we have a beneficial short position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.