We recently published a list of Top 10 actions to see as a change in AI’s trade dynamics. In this article, we will consider where the Nvidia corporation (Nasdaq: NVDA) opposes other top actions to see how to change the dynamics of AI trade.
Aswat Damodaran from the Uujorque Stern Business School said in a recent CNBC program that AI “buzz for words” no longer boosts the market because investors are growing more concerned about capital spending.
“I said about the data centers we spent before the game. I mean, the business with AI’s products and services, which in the end is what has to pay for all this, has not taken off in a significant way. It is difficult for me to think about any company to make significant money from the product and service business.”
Damodaran said the “sober” trade with AI began in September last year and the breakthrough of “Deepsekek” in China also has an impact on the industry.
“It’s part of, I think, what you see almost every word in history in the last four decades. I call these” bar Mitzva “moment,” where people wake up and say, “Okay, there are many promises, but show me something I can hang on the hat.” “
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Analyst explains why investors continue to sell Nvidia (NVDA) shares, thinks “doesn’t matter” what Jensen Huang says
Number of Hedge Fund Investors: 193
Paul Chick, co-founder of “Unsceptable”, in the latest CNBC program that investors sell NVIDIA CORP (Nasdaq: NVDA), despite positive statements by the company. The analyst believes that until the trend has changed, the actions will remain unstable.
“I think in nvidia, you know, could be the Greatest Thing Sine Sliced Bread. Jensen Can Say Whatever He Wants, But The Most Important Thing, As We Said When I Was On the Day they Reported Earnings, is the Reque. See what happened in nvidia Today, the Stock Peaked Right at 1:00 and Investors Sold Into the News There.
The market will continue to punish Nvidia in order not to appear on its giant (and sometimes unrealistic) growth expectations. About 50% of the company’s revenue comes from large cloud providers, which re -examine their plans amid DeekSeek launches and require low cost chips. NVIDIA Q1 Instructions shows revenue growth of 9.4% QoQ, which is a decrease from the previous QoQ growth by 12%. Its adjusted margin is expected to decrease significantly to 71%. The market does not like when Nvidia fails to publish a strong quarterly rhythm. The action will remain under pressure in the next quarters when the company reports on non -impressive growth.
Nvidia faces challenges on several levels. Competition is one of them. Large competitors like Apple, Qualcomm and AMD compete for TSMC’s 3NM capacity, which can limit Nvidia’s access to these chips. Why? Because Nvidia also uses 3NM -processed tsmc nodes. Nvidia is also facing direct competition from other giants who decide to make their own chips. Amazon, with its chips for AI Rarium2, offers alternatives. Training chips2 can provide cost savings and superior computational power, which can distance AI’s workload from NVIDIA offers. Apple is reportedly working with Broadcom to develop Ai server processor. Intel is also trying to get back to the game with the GPU Jaguar Shores, set to produce its knot 18a or 14a.
Global Guinness Innovators cited the following about the Nvidia corporation (Nasdaq: NVDA) in their Q4 2024 Investor letter:
“For the second year of running, Corporation Nvidia (Nasdaq: NVDA) was the highest shares of the Fund, giving a standing return of +177.7% throughout the year. Since the beginning of last year, Nvidia’s graphic graphic processes have been at the center of exploding demand for powerful and efficient chips to facilitate energy intensive requirements of AI processes within the database. Originally owning over 95% of the market share in these types of chips, Nvidia quickly hit its position as a technological leader in space, starting the successor to the current GPU “Hopper” in March, Blackwell, inhibiting AMD and Intel’s likes, making significant input in the market. Compared to the previous iteration (HOPER) that continues to encourage the extreme growth of NVIDIA’s income, the Blackwell chip is a double powerful training of AI models and has 5 times the opportunity when it comes to “conclusion” (the speed at which AI models respond to questions). Throughout the year, Nvidia’s financial performance remained elastic. Quarterly revenue reached $ 35.1 billion in the last quarter, winning 6% consensus expectations and pose a 94% increase in one year. In addition, the NVIDIA Data Center segment, driven by the Hopper (H100) chip, has increased five times over the past year, highlighting sustainable demand for advanced AI infrastructure. The H100 chip, priced at around $ 40,000, continues to see significant adoption due to its ability to improve the efficiency of training the AI model as it reduces total costs. This growth is expected to continue as companies are investing in upgrading existing data centers and new construction centers, with NVIDIA well positioned to capture a significant share in the estimated US $ 2 trillion market opportunity over the next five years. There were concerns about Blackwell production delays, causing instability in the stock price, however, Nvidia recovered quickly, driven by positive results from the year’s earnings and management guarantees of future offer. In addition, the posting of the H200 chip promises to expand NVIDIA’s technological leadership, providing continuous intensity in 2025. While NVIDIA’s valuation remains a topic of debate, stocks are not at a significant premium for history, and still appears reasonably given its dominant market position, innovative power and exposure to long -term secular growth trends in AI, and data. As a result, Nvidia remains well positioned to deliver sustainable overcoming in the long run, making it a cornerstone of growth-oriented portfolios. “
Overall, NVDA Randum in 3th place On our list of top actions to be seen as AI’s trading dynamics are changing. As we recognize the potential of NVDA, our conviction lies in the belief that under the stock of radar AI has a greater promise of delivering higher yields and we do so in a shorter timeframe. If you are looking for AI stocks that are more perspective than NVDA, but it trades less than 5 times for earning, check our report on the cheapest actions of AI.
