"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."
"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."
Nvidia faced sharp volatility during the China trade war, falling below $87 in April before later returning to all-time highs and reaching a $5 trillion market cap. Tariff uncertainties, Chinese AI innovations, and broader market bearish pressure contributed to the spring decline, while dissipating tariff fears and improving macro data supported a rebound. Nvidia controls nearly 90% of the AI accelerator market via H100/H200 GPUs and the CUDA-X ecosystem, and its data center revenue surged from $4.3 billion to over $51.2 billion. Margin preservation is cited as one of the biggest arguments against Nvidia.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]