Pella Funds' Cvetanovski: AI capital pileup, not Nvidia price, is the risk

The caution from Pella Funds' Jordan Cvetanovski lands after a volatile two days for Nvidia, which edged up 1% on Tuesday following a drop of more than 3% on Monday. While Cvetanovski says Nvidia does not look especially expensive when looking several years ahead, his bigger worry is the amount of capital that has accumulated in AI-focused stocks. That distinction matters: the concern is less about Nvidia's own price than about the crowded positioning around the broader AI trade.

His warning also follows calls from Anthropic and OpenAI executives for a slower pace of AI development because of safety concerns. That adds to questions already facing the industry after months of heavy infrastructure investment, with investors weighing whether spending on AI infrastructure can continue at its current pace.

The stakes likely hinge on whether expectations around data-center construction hold up or shift, and on whether enthusiasm for advanced AI development weakens. If either falters, Nvidia and other chipmakers could come under pressure as investors reconsider their exposure to the sector. How durable that spending proves to be is the open question.