Forget the “AI Bubble” and buy Nvidia, this investor says

ScotiaMcLeod’s Greg Newman says Nvidia (NVIDIA Stock Quote, Chart, News, Analysts, Financials NASDAQ:NVDA) remains a compelling entry point despite growing concern about an AI “bubble,” arguing that investors are underestimating the scale and durability of corporate AI adoption.

Speaking on BNN Bloomberg’s Market Call on Dec. 5, Newman said he would continue buying Nvidia shares even as the stock pulls back from recent highs and competitors such as Amazon and Google unveil their own chips.

“Everybody would say we are in an AI bubble,” he said. “But bubbles don’t happen when everybody’s watching them,” adding that prominent skeptics such as Michael Burry “are way too early.”

Newman acknowledged margins will eventually compress and “there will be a tipping point,” but said current fundamentals remain strong. “Q3 was a beat and a raise. Blackwell sales are off the charts.”

Newman argued that hyperscalers still prefer Nvidia as an independent supplier.

“Google, Amazon, Microsoft, they’re duking it out for AI. I don’t think they want to be buying each other’s chips … they like that Nvidia is independent.”

He also stressed how early the adoption curve remains.

“AI proliferation is only 3% of U.S. corporations. The rest of the world is way lower than that. AI is coming. It’s going to change everything.”

Alongside strong demand, Newman highlighted Nvidia’s capital return strategy.

“The buyback continues. They’re buying back their own stock, they think it’s cheap.”

He called the current valuation attractive.

“This stock is trading at 24 times 2027 and growing at 38%. I think it’s an excellent risk-reward … $180 is a fine entry point to buy more Nvidia.”

Asked about upside potential, Newman pointed to analyst expectations.

“Consensus is $250—that’s where they think it’s going in the next 12 months.”

Nvidia shares have gained 25.3% over the past year and closed Dec. 8 at US$185.57.

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