Nvidia shares have surged a staggering 290% over the past 12 months, continuing to set new share price highs, sparking widespread concern in the market.。However, behind this rally, industry experts have begun to warn of the risks lurking in it。

Recently, Kathy Wood, founder of ARK Investments, a well-known investment firm, expressed concerns about the future performance of Nvidia's stock in a letter to shareholders。She noted that Nvidia's earnings could be at risk, particularly in the absence of a surge in software revenue to justify GPU (graphics processing unit) excess construction.。Wood is concerned that this could lead to a spending pause, further exacerbating the inventory correction, especially among cloud customers who account for more than half of Nvidia's data center sales.。

Wood's view is not groundless。As Nvidia's customers, such as cloud service providers and companies such as Tesla, start designing their own artificial intelligence chips, the market competition may further intensify。This competitive landscape poses a potential threat to Nvidia's future earnings。

In addition to Wood, other industry experts have expressed concern about the rally in Nvidia shares.。Mizuho analyst Jordan Klein expressed concern about the extent to which Nvidia's stock gains have boosted shares of other semiconductor makers.。He worries that continued growth in semiconductor stocks may not be healthy, especially as other semiconductor stocks rise in tandem with Nvidia without new fundamental support.。

Klein's concerns are not unfounded。Over the past 12 months, Broadcom shares are up 124%, Marvell shares are up 102%, while TSMC's U.S. depository receipts are up 66%。These stocks have rallied like Nvidia, but lack significant performance support。

However, it is worth noting that not all analysts are skeptical of Nvidia。Vijay Laksh, also an analyst at Mizuho, was optimistic about Nvidia's stock, raising his price target to $1,000 from $850 and maintaining a buy rating.。Laksh believes Nvidia is on track to outperform, driven by the AI industry。

Despite the disagreement, industry experts generally agree that the overall outlook for the semiconductor industry remains positive。Klein said he is positive about the semiconductor industry and expects prices to end the year above current levels.。However, he also cautioned investors that there could be a period of profit-taking after Nvidia's upcoming AI conference on March 18.。

Overall, the Nvidia stock rally is impressive, but investors should be wary of the risks lurking in it as they chase high yields。When making investment decisions, it is necessary to consider the company's fundamentals, market competition and industry trends in order to make a more informed choice.。