Nvidia complacency is ‘real risk’

Nvidia delivered more stellar earnings, posting revenue of $57 billion compared with $54 billion forecast, but investors must avoid ‘AI complacency’, warns the CEO of one of the world’s largest independent financial advisory organisations.

The warning from deVere Group’s Nigel Green comes as the results intensify global debate over whether the extraordinary pace of AI expansion can sustain its momentum without exposing investors to severe structural risks due to an AI bubble.

The latest numbers once again confirm Nvidia’s central role in powering the AI era.

Hyper-scale demand across enterprise, sovereign programmes and cloud infrastructure continues to build, reinforcing the belief that the industry is entering an extended super-cycle.

Nigel Green argues that this moment calls for sharper thinking.

He says: “Exceptional results don’t remove the need for discipline. The AI ecosystem is growing fast, but fast growth doesn’t protect anyone from the consequences of over-extension.”

His caution is rooted in the widening gap between excitement and execution. Corporations across sectors are committing vast sums to AI infrastructure, yet the path from deployment to real commercial returns “remains untested” in many industries.

He continues: “I support the AI transformation. I believe in its long-term power. But belief is not always a strategy.

“Investors must examine whether business models can convert this scale of capital investment into sustained earnings. Complacency could be a real risk.”

The results also magnify concerns around market concentration. A small cluster of companies now carries extraordinary influence over global equities, shaping sentiment with a single update.

The deVere CEO stresses that this concentration increases exposure rather than reducing it.

“When one company defines a sector, the risk is amplified. Strong performance is welcome, yet it shouldn’t convince investors that the road ahead is frictionless.”

The AI boom has reached a point where the scale of ambition is colliding with realities of supply, regulation and geopolitical strategy.

Despite challenges, the earnings data will be interpreted by many as confirmation that AI growth is unstoppable.

Nigel Green rejects this assumption. He explains: “The numbers show demand. They don’t show durability, and they don’t show how businesses will respond when input costs rise or regulation sharpens.

“Investors must now evaluate the difference between the promise of scale and the reality of execution.”

The priority now, believes deVere, is strengthening governance frameworks that can support long-term allocation to AI.

The chief executive says that companies must stress-test assumptions about pricing power, supply security, diversification and operational resilience.

He also highlights the scale of the opportunity. “The potential is profound. But the risk environment surrounding it is equally profound. I want investors and boards to pursue the opportunity with conviction. But conviction must be matched with discipline. Otherwise the gains could be uneven and short-lived.”

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