By Stephen Wright
Publication Date: 2025-12-23 08:06:00
Image source: Getty Images
Despite a very solid 2025, the Nvidia (NASDAQ:NVDA) share price has just come off its highs. And some investors are worrying that a full-blown crash might be on the cards for 2026?
I think a number of the risks might be less significant than some investors seem to believe. But there are definitely some threats and challenges it’s getting very hard to ignore.
Growth potential
One big question with Nvidia is how long can it maintain its extraordinarily impressive revenue growth? After all, sales have more than doubled in 2025 after increasing 125% in 2024.
With the stock trading at a price-to-sales (P/S) multiple of 23, there’s clearly future growth priced in. But another 100% increase would require $130bn in additional revenues.
That’s a lot, but it’s important to keep this in context. Even if Nvidia does double its sales again in 2026, its revenues will still be below what Microsoft managed in 2025.
I think that should be a real source of optimism for the firm. The numbers are big and the growth’s impressive, but the company isn’t in uncharted territory – at least, not yet.
Vendor financing
Sceptical investors have also been focusing on the structure of some of Nvidia’s deals. In some cases, sales have been accompanied by equity investments in customers.
The concern here is partly that the buyers can’t immediately finance these deals themselves. But this is true in a number of…