Originally published in Svenska Dagbladet by Björn Jeffery, August 28, 2025

Chip company Nvidia has stopped being seen as a company and has instead become a global phenomenon. It continues to press strongly ahead — but are investors beginning to sense the top is near?

As the ninth company in world history, Nvidia crossed the trillion-dollar threshold — a thousand billion dollars — in market capitalisation. That was in May 2023, but it feels like an eternity ago.

Just two years later, in July 2025, they broke through the four trillion barrier. The company is now the world’s highest valued by a margin over second place, Microsoft, of around 700 billion dollars — more than the entire card company Visa or the retailer Walmart is worth. These are incomprehensible numbers.

When the giant reported its quarterly figures late on Wednesday evening, many already knew the answer: things are going well for Nvidia. The risk lies more in whether investors believe that perhaps this is already enough.

No investor worth the name would admit to being satisfied with less money — that’s the opposite of the point of the profession. But there are other mechanisms that affect why you sometimes sell part of a holding that is still performing well. It might be that a single position has grown too large in the overall portfolio. Or simply that it’s time to take some profits home.

In situations like that, selling is not a review of Nvidia as a company but rather a form of risk balancing. And with such a high market capitalisation and a bubbling anxiety that the red-hot AI sector might be cooling, those kinds of factors can weigh as heavily as the company’s own figures. If you don’t take the profits now, can you be certain you’ll get them at all?

The figures in the quarterly report were strong, as expected. Revenue of 46.74 billion dollars was just above analyst estimates and corresponded to a 56 percent increase year on year. Profitability was also better than expected.

The challenges came when Nvidia looked forward, and the stock fell in after-hours trading. Three areas stood out particularly.

The tensions between the United States and China over chip exports create great uncertainty for the company. In the second quarter, zero H20 chips were sold as a result — despite that being a chip specifically developed for export to China. Nvidia has indicated it believes this issue will be resolved in the near term, but there are currently no guarantees.

The company also announced a share buyback of 60 billion dollars — around 572 billion kronor — on top of what had already been decided. Short-term, buybacks can be positive for a stock, but what does it say about the company and its future? Is there really no more productive use of 60 billion dollars than repurchasing its own shares? That signal can be read as something worrying and lacking in vision.

The guidance for the coming quarter was not impressive either. The sales figure is of course high for a company of this size, but it is growth that the market cares most about. Even if AI interest among the major tech companies does not diminish, it is possible that they will buy chips differently or optimise in other ways. That in turn would create pressure on Nvidia. A certain scepticism could be sensed in the modest guidance figures.

With a sky-high market cap, it does not take much for investors to start fidgeting. If you bought into Nvidia as recently as one year ago, you have already seen a value increase of 40 percent. Go back five years and that figure is over 1,200 percent. As a stock, it has been a rocket that has acted as the locomotive for the entire market.

But is the locomotive possibly starting to slow somewhat now? If that is the case, many will be looking at their handsome returns and considering locking them in. That would mean hitting the sell button — despite the world’s highest valued listed company still growing at more than 50 percent annually.

What more can CEO Jensen Huang do? His enormous success is beginning to look somewhat like a burden. It is a thankless position for the tech company that has become a global success on a scale we have rarely seen before.