"The trade war with China was tough on Nvidia Corp. ( NASDAQ: NVDA) investors. Last 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 later in the year that seemed to be the case."
"The bearish argument that prevailed on Wall Street early last year is not entirely gone, though. While the AI rally may continue, it remains speculative, and the reasons for Nvidia stock's decline last spring were genuine. Given its challenges, Nvidia may still be at a crossroads right now. We do not know for sure where the stock will go next, but with the data on hand, we can speculate. That's what we are doing here."
"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."
Trade tensions with China and Chinese AI innovations drove Nvidia shares to a year-to-date low below $87, while broader-market bearish pressure intensified concerns. Tariff fears later eased and macro data improved, enabling a rebound to all-time highs and a $5 trillion market cap. The bearish argument remains due to speculative AI rally risks and genuine reasons for last spring's decline. Nvidia controls roughly 80% of the AI accelerator market via H100/H200 GPUs and CUDA, has rapidly grown data-center revenue from $4.3 billion to $35.6 billion, and faces margin-preservation challenges as competitors attempt to close the gap.
Read at 24/7 Wall St.
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