Are Nvidia's Market-Beating Gains Over? The Evidence Is Piling Up, and Here's What It Shows.
Nvidia (NASDAQ: NVDA) wowed investors over the past five years, soaring a mind-boggling 1,500%. The company delivered this top performance thanks to its dominance in one of today's most exciting and high-growth fields -- artificial intelligence (AI) -- a market expected to grow from about $200 billion right now to more than $1 trillion by the end of the decade.Quarter after quarter, Nvidia has delivered double-digit and triple-digit revenue growth to record levels in the billions of dollars and also has been highly profitable on sales. The company sells the world's fastest graphics processing units (GPUs), or chips that power crucial AI tasks, along with an entire portfolio of related products and services. Chief Executive Officer Jensen Huang, in a BG2 podcast last fall, even referred to the company as the "on ramp" to anything AI, and his company serves players from start-ups to market giants like Microsoft and Amazon.All of this has kept the share-price momentum going up -- until recently. Nvidia shares slipped back in January after news from start-up DeepSeek prompted investors to question the need for Nvidia's most expensive chips, and in recent days, uncertainty as to how the government's policies will impact the economy have continued to weigh on the shares. The stock now is down more than 13% year to date.Continue reading
Nvidia (NASDAQ: NVDA) wowed investors over the past five years, soaring a mind-boggling 1,500%. The company delivered this top performance thanks to its dominance in one of today's most exciting and high-growth fields -- artificial intelligence (AI) -- a market expected to grow from about $200 billion right now to more than $1 trillion by the end of the decade.
Quarter after quarter, Nvidia has delivered double-digit and triple-digit revenue growth to record levels in the billions of dollars and also has been highly profitable on sales. The company sells the world's fastest graphics processing units (GPUs), or chips that power crucial AI tasks, along with an entire portfolio of related products and services. Chief Executive Officer Jensen Huang, in a BG2 podcast last fall, even referred to the company as the "on ramp" to anything AI, and his company serves players from start-ups to market giants like Microsoft and Amazon.
All of this has kept the share-price momentum going up -- until recently. Nvidia shares slipped back in January after news from start-up DeepSeek prompted investors to question the need for Nvidia's most expensive chips, and in recent days, uncertainty as to how the government's policies will impact the economy have continued to weigh on the shares. The stock now is down more than 13% year to date.
