Nvidia Stock Outlook: Will It Recover in 1 Year?
Nvidia's (NASDAQ: NVDA) stock has hit a roadblock despite its chip business breaking records, with shares down 10% year to date. The company's fourth-quarter earnings were another success, but investors responded by selling the stock. Nvidia's near-term success relies heavily on its new Blackwell GPUs, which are expensive but can save clients money as they manage AI-related workloads.
- The growing competition from custom chips could erode Nvidia's pricing power and margins, making it challenging for the company to maintain its current growth trajectory.
- As Nvidia faces increasing pressure from custom chip manufacturers, what role will its data center segment play in helping the company navigate this new competitive landscape?