Investor darling Nvidia’s artificial intelligence momentum continued as revenue beat expectations last week. The company’s earnings report on Wednesday pushed the stock above $1,000 for the first time. The stock continued to perform well in Thursday trading, closing at an all-time high, up more than 9%. But some analysts are concerned about a possible slowdown in growth from the previous quarter and a “hollowing out” of revenue toward the end of the year. “The biggest question is how long is this runway,” said Lucas Kaye, an analyst at research firm Third Bridge. “Nvidia’s dominant market share will be tested as the majority of AI workloads in the cloud shift from training to inference. Most use cases for inference don’t require the depth or volume of computation that Nvidia’s top-class GPUs provide,” he said. Nancy Tengler of Laffer Tengler Investments said she expected more upside given the “phenomenal revenue.” “But a lot of that is priced into the price, and now that’s going to trickle down to other companies in the space,” the chief investment officer said on CNBC’s “Squawk Box Asia” on Thursday. Wall Street remains bullish on Nvidia, with several analysts raising their target prices for the stock. But investors concerned about being overinvested in Nvidia or looking to balance their portfolios may want to consider shifting their allocation to the company or supplementing it with other growth stocks that have a lower correlation to the chipmaker. CNBC Pro used FactSet to screen four exchange-traded funds for stocks that have a low or negative correlation to Nvidia over the past month. The ETFs are Vanguard S&P 500 Growth ETF, Schwab US Large Cap Growth ETF, Vanguard Russell 1000 Growth ETF and Fidelity Enhanced Large Cap Growth ETF. These stocks emerged.
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