“I have entered a short position with a two-year price target of $75… For those who don’t short, I recommend selling $NVDA stock if you own it or just staying away.” This is how Jeremy Blum concluded his December 15, 2025 Seeking Alpha article titled “17 Reasons To Short Nvidia To $75.” Blum’s core thesis here is this: AI itself will keep improving and become more useful. But, as new AI comes out, future AI will simply need less power ⬇️ (e.g., DeepSeek which saves power by turning off when not in use). And because future AI will need less power, the *big* problem today is… You guessed it— The MASSIVE spending on AI infrastructure ‼️. Blum believes that, specifically, data center construction will slow down considerably after 2026. 📉 And who will be the most exposed and vulnerable when this happens? Yes— $NVDA ✨. Why? Well, here are four interesting points Blum highlights: (1) 🔋 Power is the real bottleneck here—not chips: The U.S. grid simply cannot support all of the data center construction that’s planned as power plants take years or even decades to build. And chips can’t run if they can’t be plugged into anything. So, because there’s nowhere to plug in all these chips companies are buying from $NVDA, they currently are just sitting in inventory and collecting dust in the meantime. (2) ⚡️ Efficiency gains will reduce infrastructure needs: Efficiency gains that will largely (and supposedly) come from AI itself will reduce the need to invest in infrastructure as time goes on. So, as tech/systems mature and become better, fewer chips will simply be needed to achieve the same level of output. (3) 😤 Local and political pushback: Data centers are loud, raise energy costs, and create few permanent jobs. Several U.S. communities across various cities and states are increasingly being vocal and resistant to them. Additionally, as Blum puts it: “Do you expect local, State, and Federal governments to idly stand by as their voters start losing a lot of jobs to AI? There will be pressure to do something if that happens. If it doesn’t happen, then AI will not be providing an acceptable return on investment.” 💭 (4) 😰 Growing investor concerns: Notice how hyperscaler stocks now drop when companies announce more AI spending? 🔍 Like… On December 11, $ORCL dropped 11% after plans to increase its AI Capex by $15 billion got announced. And on October 30, $META also dropped 11% after they made a similar announcement. Additionally, on December 12, Fermi ($FRMI)’s, an energy and data center infrastructure company, stock cratered by 34% when it lost a $150 million construction funding commitment from its first major tenant at its Project Matador campus in Texas. Now, while there have been few other lost orders yet, such a huge drop like this indicates “the market is concerned,” Blum writes. And given the pattern of these drops and pullbacks happening in general, one could say that “cracks are emerging.” ***** For a company that is now worth more than the GDP of most countries, it’s true that $NVDA has a lot to lose and that a fall from grace will be a long and memorable one. Of course, there’s the scenario where things will continue to go right for the company and the AI industry as a whole. Ultimately time will reveal the outcome.
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96 Comments
Eldon
@selldon · 10mo
I get the idea, but that's super aggressive. For your sake, I hope you're right.😅
Lamar
@aleitheia712 · 10mo
If you're betting against Nvidia, prepare to get crushed.
Lee @leeinvests · 10mo
I see you're catching the wrath of the Nvidia mafia. 🤣 It's funny how people get emotionally attached to stocks. I can see both sides of the Nvidia trade. I reduced my NVDA position. I keep a little mostly to keep an eye on it. I still have plenty of exposure to it in etfs. When the price comes down to earth, I'll rotate back in.
Paul @mrwhite007 · 10mo
One couldn’t help notice you’re “under attack” 😂 may I offer bodyguard protection? My fee is a years supply of mint chocolate protein bars, a bottle of scotch and a long straw 👍🏻😂
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