"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 that seems to have been the case. The stock returned to all-time highs as some tariff fears dissipated and macro data improved."
"AI Infrastructure Dominance: Nvidia controls an estimated 80% of the AI accelerator market through its H100/H200 GPUs and CUDA 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."
Nvidia returned to all-time highs after tariff fears eased and macroeconomic data improved. Shares fell to below $87 in April amid trade-war concerns and Chinese AI competition. Nvidia controls an estimated 80% of the AI accelerator market via H100/H200 GPUs and the CUDA ecosystem, creating strong customer stickiness. Data-center revenue expanded from $4.3 billion in Q1 2023 to over $35.6 billion in Q4 2024. Sustaining leadership requires continuous GPU architecture and energy-efficiency innovation as AI workloads grow. Margin preservation is a major risk if competitors close performance or cost gaps. Investors must weigh the speculative AI rally against tangible advantages and geopolitical headwinds.
Read at 24/7 Wall St.
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