"AI Infrastructure Dominance: Nvidia controls almost 90% of the AI accelerator market through its H100/H200 GPUs Blackwell Ultra architecture, as well as the CUDA-X 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."
"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."
Nvidia experienced a sharp stock decline amid the China trade war, tariff fears, Chinese AI competition, and bearish market pressure. The stock later rebounded to all-time highs as some tariff concerns eased and macro data improved, reaching a $5 trillion market cap. Three core drivers will shape performance through 2030: near-monopoly AI infrastructure share with H100/H200 GPUs and CUDA-X, massive data-center revenue growth from $4.3 billion to over $51.2 billion, and the challenge of preserving margins while scaling. Speculative valuation risks and macro uncertainties still present potential headwinds.
Read at 24/7 Wall St.
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