nvidia: buy or sell? analysts split on chip giant's future
New York, Thursday, 24 April 2025.
nvidia’s stock sparks fierce debate among financial experts. Some cnbc panelists are advising investors to sell, citing valuation concerns. A contrasting report indicates significant hedge fund interest, positioning nvda as a top stock pick under $100. This divide underscores the uncertainty surrounding nvidia’s true value and potential for continued growth in a competitive market.
sk hynix’s role as nvidia supplier
SK Hynix, a key supplier of high bandwidth memory (HBM) to Nvidia, reported a surge in quarterly profit, driven by the artificial intelligence (AI) boom [3]. The company’s Q1 revenue reached 17.64 trillion won ($12.36 billion), with an operating profit of 7.44 trillion won [3]. This represents a revenue increase of approximately 42% compared to the same period last year [3]. The operating profit also saw a significant surge of 158% year-on-year [3]. SK Hynix anticipates its HBM revenue in 2025 will more than double compared to the previous year, highlighting the strong demand for AI-related memory solutions [3].
market dominance and expansion
SK Hynix has achieved a dominant position in the HBM market, capturing 70% of the market share in Q1 2025 [3]. This success reflects the company’s strategic focus on highly profitable AI memory [3]. Furthermore, SK Hynix has surpassed Samsung in the overall DRAM market, securing a 36% global market share compared to Samsung’s 34% [3]. To meet the growing demand, SK Hynix plans to begin constructing a new fabrication facility in Cheongju, South Korea, by the end of April, with mass production expected to start in November 2025 [3].
concerns over demand volatility
Despite the positive financial results and market position, SK Hynix has issued a warning regarding potential demand volatility in the second half of the year [3]. Macroeconomic uncertainties, including tariff policies, are expected to impact demand [3]. An SK Hynix executive noted growing concerns that tariffs could be applied to semiconductor products [3]. These concerns highlight the potential risks and challenges that Nvidia and its suppliers may face due to geopolitical and economic factors [3].
analyst perspectives and market outlook
Analysts on CNBC have presented mixed opinions on Nvidia’s stock, with some advising investors to sell due to valuation concerns [1]. However, a contrasting viewpoint suggests strong hedge fund interest in Nvidia, identifying it as a top stock under $100 [1]. These conflicting perspectives underscore the ongoing debate surrounding Nvidia’s valuation and future growth prospects [1]. The performance of key suppliers like SK Hynix and their ability to navigate market uncertainties will likely play a crucial role in Nvidia’s continued success [3].