Jeff Kagan: Why Nvidia has Wall Street scratching its head over AI investing

February 25, 2025 at 10:32 AM EST

While on one hand it is true that Nvidia is one of the big winners in the vibrant and ever-changing AI space, that does not mean Wall Street or investors understand artificial intelligence. There are ongoing changes, new winners and new losers, and the entire area is continually shifting.

Nvidia NVDA has been busy sorting through their options. Recently, Nvidia made some serious moves to their investment strategy. Many buys and sells which investors are trying to wrap their mind around.

When it comes to timing of what to buy, what to sell and when, AI is unlike every other industry, but on steroids. Everything is bigger and faster. That includes when to buy and sell, invest and acquire.

Artificial Intelligence has been with us for decades to one extent or another. However, in the past two years it has exploded with growth and onto the public stage. Today, AI is one of the most important, fastest growing, always changing and least understood technologies for corporate customers and investors. Consider:

Point 1: AI investment from every company in every industry means billions of dollars are being committed on a regular basis.
Point 2: AI continues to update, and growth continues to accelerate.
Point 3: specific types of AI technology which lead today may not lead tomorrow.

Every company seems to know this is a pond they must jump into. However, the vast majority of individuals who are responsible for their company are also very uncertain of this new word.

AI leaders like Nvidia must be perpetual gardeners

Even leaders in AI like Nvidia need to be a perpetual gardener. They need to continue to buy and sell as the technology matures and as newer tech is developed. You and every company need to stay on this new growth wave. In my opinion, that is exactly what Nvidia CEO Jensen Huang is now doing.

A thriving garden can be weakened, reduced and ultimately overwhelmed, then replaced by the next competitor in line. Instead, the gardener must always prune away the weak investments to let the others thrive. They also need to stay alert and buy newer and stronger investments with technology which will help them continue to grow.

As AI continually grows and changes, a complex and confusing area becomes even more so. It that is the case, how do you know where to invest?

You don’t need to understand AI, just what those who do are doing

Whether you know AI or not, this concept is important for everyone to understand. That is why we need to watch every move that many important AI companies like Nvidia are making. To know what they are walking away from and what they are walking toward.

Don’t get me wrong. Companies like Nvidia won’t always get it right either. However, they have put their company on the line with the choices they make. And these are the AI experts it would be most beneficial to follow.

That being said, does it not make sense to understand what they are doing and know the direction things are going so you can follow along?

More from Jeff Kagan: The quantum theory behind the new Google Willow chip

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Jeff Kagan: Why Nvidia has Wall Street scratching its head over AI investing

AI leaders like Nvidia must be perpetual gardeners

You don’t need to understand AI, just what those who do are doing

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