Posted 2/20/2024, 9:30:00 AM
Nvidia Leads in AI Chip Market But Faces Risks to Growth and Valuation
- Nvidia is a clear leader in AI hardware, but its valuation seems very high right now
- Nvidia needs to deliver spectacular growth for years just to justify its current stock price
- Nvidia has been cyclical in the past despite strong positions in growing markets
- Competition will likely prevent Nvidia from dominating the AI market indefinitely
- There is substantial uncertainty around Nvidia's future growth and ability to sustain high valuations