Nvidia's Fort Is Sieged By Big Tech, China, And Startups, But It's A Two-Year Buy (Rating Upgrade)
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Nvidia faces competitive pressures from startups, Broadcom, AMD, and Big Tech's AI chips, along with U.S. restrictions and China's domestic AI push, reducing its China revenue share. Despite these challenges, Nvidia is considered a two-year buy due to its current valuation.
December 23, 2024 | 9:45 am
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Nvidia is facing increased competition from startups, Broadcom, AMD, and Big Tech's AI chips, along with reduced revenue from China due to U.S. restrictions and China's domestic AI initiatives. Despite these challenges, Nvidia is considered a two-year buy due to its current valuation.
Nvidia's competitive landscape is becoming more challenging with the rise of startups and established players like Broadcom and AMD entering the AI chip market. Additionally, U.S. restrictions and China's push for domestic AI chips are expected to reduce Nvidia's revenue from China significantly. However, the company's current valuation offers a margin of safety, making it a potential buy for the next two years despite the risks.
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