Nvidia's stock is near its lowest valuation in the AI era amid growing uncertainties, including a US trade ban affecting its H20 chip line sales in China. This development raises concerns about declining AI spending as the economic landscape shifts. Investors are cautious, with Nvidia's stock declining more than 25% this year, even as revenue growth predictions remain robust. Analysts highlight the slight premium Nvidia's valuation holds over the S&P 500, while emphasizing dependency on major tech companies' ongoing investment in AI infrastructure amid potential macroeconomic slowdowns.
The outlook isn't as compelling as it was, and you really have to make a lot of assumptions here, about tariffs, China, hyperscalers, the macro.
That Nvidia only trades at a slight premium to the market is notable given the company’s growth is expected to be dramatically faster.
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