The moment markets have been eagerly awaiting has finally arrived. Nvidia (NVDA) has released its first quarter earnings report, surpassing expectations on both revenue and profitability. D.A. Davidson Managing Director Gil Luria joins Asking for a Trend to discuss why he believes Nvidia is not a stock to buy despite its current performance.

Luria acknowledges that Nvidia's results were "great," though "it shouldn't be too surprising" given their customers forewarned about increased spending on Nvidia's products. He pointed out that tech companies are engaged in an "arms race" to acquire as much generative AI capacity as possible, creating significant demand for the semiconductor company.

However, Luria cautions that with more companies looking to rival Nvidia, "that's what you have to start thinking about for next year and the year after that." He emphasizes that these emerging competitive threats are something investors should closely monitor. For this reason, Luria says Nvidia is not currently a stock to buy: the company's "own customers" will be competing with them, leading to a revenue decline.

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This post was written by Angel Smith