Nvidia (NVDA) reported better-than-expected second-quarter results after the market closed on Wednesday, with a current-quarter outlook that also beat expectations. The chip giant reported adjusted earnings of $0.68 per share, compared to $0.64 expected. Revenue came in at $30.0 billion versus an estimated $28.86 billion.

Can the chip giant, like other semiconductor manufacturers, maintain its success?

DA Davidson CEO Gil Luria sits down with Yahoo Finance Editor-in-Chief Brian Sozzi to discuss Nvidia’s second-quarter earnings, market expectations for competition in the sector, and what the future holds for these companies.

“I expect that we will see at least slowing growth next year and possibly a revenue decline at some point. If you look at the consensus estimates and the sell-side estimates, growth is going to remain at a very high level. That’s very hard to justify, given that Nvidia’s revenue is the margins of these other companies,” Luria said.

He continues that sentiment by saying, “Microsoft (MSFT) specifically has forecast lower margins this year, and because of their spending on Nvidia GPUs and the fact that they have to amortize those data center costs that don’t last forever. And that means that estimates for next year and the year after are starting to get way out of hand.”

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This post was written by Nicholas Jacobino