Posted 2/8/2024, 9:06:00 AM
Headwinds Mounting for Nvidia Despite AI Dominance
- Increasing production of AI chips will likely weigh on Nvidia's gross margins going forward
- External (AMD, Intel) and internal (Meta, Microsoft) competition in AI chips is heating up
- Regulatory restrictions are putting a ceiling on Nvidia's growth potential, especially in the key China market
- Insiders haven't been buying shares despite the stock's meteoric rise
- The stock is priced for perfection despite risks of margin erosion and slowing growth