Nvidia: AI Growth Remains Strong, but Financing Risk raisesNVIDIA CorporationBATS:NVDAActivTradesNvidia: AI Growth Remains Strong, but Financing Risk Enters the Equation By Ion Jauregui, Analyst at ActivTrades Nvidia remains at the centre of the AI investment cycle, with financial results still showing exceptional growth. In its latest quarter, revenue reached $81.6 billion, up 85% year-on-year, while Data Center revenue rose 92% to $75.2 billion. Net income increased 211% to $58.3 billion, with a 74.9% gross margin. Operating cash flow reached $50.3 billion and free cash flow $48.6 billion. Nvidia also expects $91 billion in revenue for the next quarter. These numbers continue to support the fundamental case. Nvidia is generating substantial cash while maintaining very high margins. However, the planned mobilisation of more than $500 billion of third-party capital for AI infrastructure introduces a different risk: whether the returns generated by the AI ecosystem will be sufficient to justify the enormous investment being financed. If hyperscalers reduce capex or GPUs depreciate faster as new generations arrive, pressure could initially emerge in financing vehicles and private credit rather than directly on Nvidia’s balance sheet. Credit-risk pricing therefore becomes an important indicator alongside earnings growth. Technical analysis Nvidia closed at $225.12, with a high of $236.51, close to the May 14 high. The moving averages continue expanding upwards, maintaining the bullish structure. $236.51 is the key resistance. A break above it would strengthen the continuation scenario and potentially open a new price-discovery phase. The POC at $207.97 is the main intermediate reference. Below it, the $196-$190 zone remains the key support, having been tested three times. Conclusion The current fundamentals do not yet suggest that the AI investment cycle is losing momentum. Revenue growth, profitability and cash generation remain exceptionally strong. The bigger question is whether this level of growth can be sustained while the financial system increasingly supports the infrastructure required to maintain it. For Nvidia, earnings remain the fundamental driver, while credit exposure is becoming the main risk variable. The combination of strong cash generation and a bullish technical structure keeps the medium-term outlook constructive, but the sustainability of AI capital expenditure will be critical for the next phase of the valuation. ******************************************************************************************* The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication. All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.