"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 lately that seems to have been the case. The stock returned to all-time highs as some tariff fears dissipated and macro data improved,"
"The bearish argument that prevailed on Wall Street early this year is not entirely gone, though. While the AI rally may continue, it remains speculative, whereas the reasons for Nvidia stock's decline in the spring were genuine. Given challenges such as being effectively locked out of China, Nvidia may still be at a crossroads right now. We do not know for sure where the stock will go next, but with the data on hand, we can speculate. That's what we are doing here."
"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 shares fell below $87 in April amid the trade war with China, tariff uncertainties, and competition from Chinese AI innovations. The stock later returned to all-time highs as tariff fears dissipated, macro data improved, and Nvidia reached a $5 trillion market capitalization. Bearish pressures remain because of speculative aspects of the AI rally and genuine spring declines tied to China access restrictions. Nvidia controls an estimated 80% of the AI accelerator market via H100/H200 GPUs and the CUDA ecosystem, and data-center revenue rose from $4.3 billion in Q1 2023 to over $35.6 billion in Q4 2024. Concerns about margin preservation and restricted China access leave Nvidia at a crossroads for future performance through 2030.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]