"Like its fellow Magnificent 7 members, Nvidia struggled due to economic uncertainties about the effects of tariffs, as well as due to Chinese AI innovations. Bears saw Nvidia stock falling further because of bearish pressure from the broader market. Yet, some investors remain optimistic for a sustained rebound, and later in the year that seemed to be the case. The stock returned to all-time highs as some tariff fears dissipated and macro data improved, and Nvidia became the first $5 trillion market cap company."
"AI Infrastructure Dominance: Nvidia controls almost 90% of the AI accelerator market through its H100/H200 GPUs Blackwell Ultra architecture, as well as the CUDA-X software ecosystem. It is tough for Nvidia customers to switch to another supplier. This has allowed the company to dominate the industry, with customers returning year after year. As such, it is well-positioned to capture growth from the $400 billion AI chip market projected for 2030."
The trade war with China depressed Nvidia's stock, sending shares below $87 before later returning to all-time highs and achieving a $5 trillion market cap. Nvidia controls nearly 90% of the AI accelerator market through H100/H200 GPUs and the Blackwell Ultra architecture, supported by the CUDA-X ecosystem, creating strong customer stickiness. Data center revenue surged from $4.3 billion in Q1 2023 to over $51.2 billion most recently, reflecting rapid demand for AI workloads. Continued leadership requires ongoing GPU architecture and energy-efficiency innovation. The AI rally remains speculative, and tariff, macro, and margin risks leave the company at a crossroads through 2030.
Read at 24/7 Wall St.
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