Analysts and investors are increasingly weighing its potential upside and growing risks as Nvidia Corporation continues to be a cornerstone of the artificial intelligence (AI) and semiconductor boom. Nvidia’s share price has performed mixed in recent weeks, fueled by optimistic projections for AI infrastructure spending but tempered by worries about major tech companies slowing down their capital expenditures (capex) and high valuation expectations. This has sparked a debate about whether the stock will continue its strong trajectory or encounter significant headwinds.

Nvidia’s dominance in the supply of GPUs—the chips at the heart of today’s accelerated AI computing—to hyperscale cloud providers like Amazon, Microsoft, Alphabet,…