"The trade war with China was tough on Nvidia Corp. ( NASDAQ: NVDA) investors. In 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."
"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."
The trade war with China drove Nvidia shares to a year-to-date low below $87 in April, as tariff concerns and Chinese AI progress pressured the stock. Some investors remained optimistic and the stock later returned to all-time highs as tariff fears eased and macro data improved. Nvidia controls an estimated 80% of the AI accelerator market via H100/H200 GPUs and the CUDA ecosystem, creating high switching costs. Data-center revenue jumped from $4.3 billion in Q1 2023 to over $35.6 billion in Q4 2024. Nvidia is positioned to capture growth from a projected $400 billion AI chip market by 2030.
Read at 24/7 Wall St.
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