Nvidia Pushes Back Against Analysts’ Criticism as Market Scrutiny Intensifies
GeokHub
Contributing Writer
SAN FRANCISCO, Nov. 27, 2025 — Nvidia has issued a strong rebuttal to a wave of recent criticism that questioned the company’s valuation, financial practices and long-term stability. The firm circulated a detailed memo to analysts, defending its performance and rejecting comparisons made by detractors who likened its financial trajectory to past corporate accounting scandals.
According to the memo, Nvidia dismissed claims that it is struggling with excess inventory, delinquent customers or suspicious financial patterns. It argued that these narratives are misleading and based on selective interpretations of public data. The company insisted that its disclosures remain accurate and compliant with all regulatory standards.
Nvidia acknowledged one challenge: its latest “Blackwell” chips — which power some of the world’s most advanced AI systems — come with higher warranty costs and slightly lower margins due to their complexity. However, the company emphasized that demand for its AI hardware remains resilient and that its long-term roadmap has not changed.
The controversy intensified after speculation emerged that one of Nvidia’s major clients was considering shifting to rival AI chips. That rumor placed additional pressure on the stock, contributing to a sharp market sell-off earlier in the week and opening the door for critics to amplify broader concerns.
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Industry Impact and Market Outlook
The dispute highlights growing tension within the AI-chip sector, where competition is accelerating and investor expectations remain sky-high. Nvidia’s strong defense signals both confidence in its fundamentals and acknowledgement that it is operating under unusually intense scrutiny.
Analysts say Nvidia’s ability to balance innovation with profitability will be closely watched in the coming quarters. While the company remains the dominant force in the global AI hardware market, rising competition, higher production costs and unpredictable customer shifts could shape the firm’s performance in 2026.
For now, Nvidia is focused on reassuring investors that its growth story remains intact — even as debates over valuation and market dominance continue to intensify.
