"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."
"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."
Trade tensions with China and tariff-related economic uncertainties pushed Nvidia shares to a year-to-date low below $87 in April before a rebound to all-time highs as some tariff fears eased and macro data improved. Persistent bearish pressure and competitive risks remain, making the rally speculative. Three primary drivers will shape performance through 2030: control of roughly 80% of the AI accelerator market via H100/H200 GPUs and CUDA, a surge in data-center revenue from $4.3 billion in Q1 2023 to over $35.6 billion in Q4 2024, and the need to preserve unusually high margins amid competitors catching up. Outcomes remain uncertain as competitive, macro, and trade factors evolve.
Read at 24/7 Wall St.
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