"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."
"1. 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."
"2. Data Center Expansion: Its data center revenue has surged from $4.3 billion in Q1 2023 to over $35.6 billion in Q4 2024. Maintaining leadership here requires continuous innovation in GPU architecture and energy efficiency as AI workloads grow exponentially. So far, Nvidia has managed to do that. 3. Margin Preservation: One of the biggest arguments against Nvidia is that it may not be able to hold on to its"
Nvidia experienced severe volatility amid China trade tensions and tariff uncertainty, plunging below $87 before rebounding to record highs and a $5 trillion market valuation. Persistent bearish concerns stem from the speculative nature of the AI rally and genuine risks from restricted China access. Key long-term performance drivers through 2030 include dominant AI infrastructure share via H100/H200 GPUs and the CUDA ecosystem that makes customer switching difficult, rapid data-center revenue growth from $4.3 billion to over $35.6 billion, and the critical challenge of preserving margins while innovating GPU architecture and improving energy efficiency.
Read at 24/7 Wall St.
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