Gene Munster Flags Concerns Over Nvidia’s Long-Term Growth Trajectory Despite Blockbuster Q4 Earnings

Munster was upbeat about Nvidia’s physical AI segment saying that by CY30 the segment can become a $50 billion plus annual business for the company.

• He also said that investors “don’t care” about the gaming segment. 
• Munster said that despite Nvidia’s CEO Jensen Huang’s comments of reaching an inflection point where compute equals revenue, it will not silence the skeptics who fear AI will result in profitless prosperity.
• Goldman Sachs analyst James Schneider said in a note that the firm expects the stock to trade higher following a stronger quarter and guidance relative to the Street.

Deep Water management’s Gene Muster in a social media post flagged his concerns over Nvidia’s future growth trajectory.

“I estimate roughly 70% of $NVDA revenue currently comes from just 8 companies. This concentration underpins investor concerns regarding the long-term sustainability of this growth,” he said in a X post. 

He also said that investors “don’t care” about the gaming segment. 

More From Munster

Munster was upbeat about Nvidia’s physical AI segment saying that by CY30 the segment can become a $50 billion plus annual business for the company. He further added that this segment could represent about 8% of a $600 billion revenue base in CY30. 

Munster said that despite Nvidia’s CEO Jensen Huang’s comments of reaching an inflection point where compute equals revenue, it will not silence the skeptics who fear AI will result in profitless prosperity, massive productivity gains that don't have a ROI. 

Goldman Sachs Take 

Goldman Sachs analyst James Schneider said in a note that the firm expects the stock to trade higher following a stronger quarter and guidance relative to the Street, and against relatively bullish expectations heading into the quarter, as per TheFly.

“While investor expectations were somewhat elevated heading into the quarter, given recent upward CapEx revisions from hyperscalers, the firm believes Q1 guidance was above investor expectations, based on conversations, Goldman added. The firm kept a ‘Buy’ rating and $250 price target on Nvidia. 

Nvidia Results

Nvidia reported fourth-quarter (Q4) 2026 revenue of $68.1 billion, up 73% from the same period last year, and it also beat analyst expectations of $66.12 billion, as per data from Fiscal.ai. The company's gross margin came in at 75.2%, while full-year gross margin was 71.3%. 

Nvidia’s outlook for the first quarter of 2026 also topped Wall Street expectations, as it forecasts revenues of $78 billion, plus or minus 2%, compared to a consensus of $71.64 billion. 

How Did Stocktwits’ Users React?

On Stocktwits, retail sentiment around NVDA shares soared to ‘extremely bullish’ from ‘bearish’ territory over the past 24 hours amid ‘extremely high’ message volume. 

Shares in the company have risen 52% over the past year. 

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