"The trade war with China was tough on Nvidia Corp. ( NASDAQ: NVDA) investors. In April, shares hit a year-to-date low below $87 apiece. 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."
"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 experienced a severe downturn during the China trade war, with shares dropping below $87 in April due to tariff uncertainty and Chinese AI competition. The stock later climbed back to record highs as tariff fears eased and macro data improved, culminating in a five-trillion-dollar market capitalization. Ongoing bearish arguments persist because the AI rally contains speculative elements and access to China remains constrained, creating continued uncertainty. Three key performance drivers through 2030 include dominant AI infrastructure share via H100/H200 GPUs and CUDA, rapid data-center revenue expansion from $4.3 billion to $35.6 billion, and questions about sustaining high margins.
Read at 24/7 Wall St.
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