Nvidia's stock valuation is currently near its lowest point in the AI era, prompting investor caution despite the seemingly attractive dip. Recent US restrictions on selling H20 chips in China are expected to cost the company billions, exacerbating concerns about a potential slowdown in AI spending. This development, coupled with the escalating trade war, casts a shadow over Nvidia's growth prospects.
Analysts highlight that Nvidia's future hinges on its ability to maintain dominance in the data centre and AI sectors. Competition from AMD and internal AI silicon development by major tech players like Google, Microsoft, and Amazon pose significant threats. Geopolitical tensions and regulatory actions further complicate the landscape, potentially hindering Nvidia's sales in key markets. Despite these challenges, nearly 90% of analysts maintain a positive outlook on Nvidia, citing its strong market position and technological advantages.