NVIDIA Facing 12-to-1 Demand to Supply for its Chips, Says Expert—and It Might Be Time to Buy

NVIDIA Facing 12-to-1 Demand to Supply for its Chips, Says Expert—and It Might Be Time to Buy Joey Frenette Tue, August 4, 2026 at 6:38 PM GMT+2 5 min read NVDA META ORCL-PD GOOG MSFT Quick Read Dan Ives cites a 12-to-1 demand-to-supply ratio for Nvidia chips, undercutting Burry's bearish put position despite slowing stock momentum. Meta and Oracle have aggressively pivoted into hyperscaling, broadening Nvidia's customer base and intensifying GPU demand beyond traditional cloud providers. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut.

Grab the names FREE today . Nvidia ( NASDAQ:NVDA ) stock might have slowed down in the past year, gaining less than 15% in the timespan, but the business is still moving at a staggering pace as it does its best to meet sky-high AI demand while investing in the bottlenecks in the buildout. Whether it's the desire to time a peak in hardware (no evidence of that yet), fears over circular financing and its potential to cause a violent unwind of some sort of "AI bubble," Nvidia stock isn't going to be right for everyone.

Perhaps the biggest reason to stay sidelined is the slowing upside momentum combined with the bearish bets put on by the great Dr. Michael Burry, who's best known for betting against the housing market ahead of the 2008 Great Financial Crisis. With Dr.

Burry recently adding to his already lofty put position, questions linger as to whether Nvidia stock is peaking out, even as the business itself continues to post spectacular results. pestoverde / Flickr On the flip side, Dan Ives of Yorkville & Ives sees more wins coming for Nvidia, with "12-to-1" demand for its chips, a reality check that might not be baked into this increasingly skeptical market quite yet. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut.

Grab the names FREE today . Expectations are high, but Nvidia just keeps sprinting faster Of course, it's going to be hard for Jensen Huang and company to keep sprinting at this pace for the long haul. Past blowout quarters have pretty much caused Nvidia's expectation treadmill to be on max.

And while the firm hasn't broken a sweat just yet, skeptics like Dr. Burry know that staying at such a pace just isn't sustainable over time. But what if Nvidia really is a seasoned marathon runner that can keep the pace on a maxed-out treadmill for tens of miles more?

While the company itself is going to keep blowing the numbers away, what's harder to predict, at least in my view, is how investors and the market will react, especially as they grow more exhausted in a market environment that could become a whole lot more volatile as we head into the latter half of the third quarter — a period that tends to see things get just a bit more turbulent. Story Continues Like it or not, Nvidia is continuing to be in that "Goldilocks" zone, all while the firm continues operating at the highest level possible. Even if someone like Dr.

Burry increases his short exposure by way of bearish put options, I find it hard to bet against a firm that's seeing real earnings growth, unheard-of gross and operating margins, as well as rising CapEx from hyperscaler customers. It's not just that hyperscalers are increasing their spend to advance the AI buildout to make way for the next generation of AI applications, but it's more players that stand to enter the hyperscaler group. Think Meta Platforms ( NASDAQ:META ) and Oracle ( NYSE:ORCL ), which, like it or not, are in the hyperscaler game now after their respective pivots.

Meta decided to go ahead with selling compute via Meta Compute, while Oracle has seemingly prioritized Oracle Cloud Infrastructure (OCI) above all else. Indeed, the latter firm actually sacrificed its credit rating to pull off what could be one of the most aggressive pivots in corporate history. AI demand might overwhelm supply to a greater extent Any way you look at it, AI data centers are going up, and they'll be coming online fast.

And, with that, a lot of next-generation Nvidia GPUs are going to keep flying off shelves, with firms at the front of the line deemed the most fortunate to be able to hand over obscene sums of cash for the right to get their hands on the latest and greatest hardware. With Ives recently highlighting a 12-to-1 demand-to-supply ratio for its chips, I think it's hard to get behind the bearish narrative right now when the reality points to more of the same, perhaps for far longer than almost anyone except for Ives and the bigger bulls expects. In any case, Nvidia is back in the $5 trillion market cap club, and with a 22.

8 times forward price-to-earnings (P/E) multiple, I'd say it's hard to bet against the firm, given the current reality of the fundamentals. The bottom line What's most dangerous for the bears, in my view, is what happens when hyperscalers start clocking in those ROIs, as cloud growth keeps moving higher in a way that catches just about everyone off-guard. When you look at those Amazon ( NASDAQ:AMZN ), Microsoft ( NASDAQ:MSFT ), and Alphabet ( NASDAQ:GOOG ) numbers, maybe higher CapEx will soon be what Wall Street craves rather than rejects.

For Nvidia stock to pass Go and collect $20, I think the hyperscalers are going to need to see that growth jolt turn into a free cash flow inflection point. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today .

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