"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."
"Three Key Drivers of Nvidia Performance Through 2030 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."
Nvidia shares fell below $87 in April amid the China trade war, tariff uncertainty, Chinese AI competition, and bearish market pressure. The stock later recovered to all-time highs as tariff fears eased and macro data improved, though downside arguments from earlier in the year remain plausible. Three key drivers through 2030 support potential growth: AI infrastructure dominance via H100/H200 GPUs and CUDA making customer switching difficult; massive data-center revenue expansion from $4.3 billion in Q1 2023 to over $35.6 billion in Q4 2024 requiring ongoing GPU innovation and energy efficiency; and concerns about preserving massive margins as competitors close the gap.
Read at 24/7 Wall St.
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