Nvidia's growth rate is slowing, but strong position in AI market and potential for breakthroughs.

From Nasdaq: 2024-11-25 10:30:00

Nvidia’s stock saw a 3.4% drop after its fiscal 2025 Q3 results, but analysts predict revenue growth will slow to 49.2% in fiscal 2026. However, with major cloud providers set to invest $267 billion in AI infrastructure next year alone, Nvidia’s 80% market share in AI chips makes it a solid long-term play.

The company’s dominance in AI computing is evident with record data center revenue of $30.8 billion in Q3, up 112% year-over-year. Major cloud providers like Microsoft, Alphabet, and Amazon are investing billions in AI infrastructure, with the total addressable market projected to reach $500 billion by 2028. Gross margins are at 74.6% due to operational efficiency and technological innovation.

Despite a cooling growth rate, Nvidia remains reasonably valued at 33.6 times forward earnings. With a strong position in the AI market, expanding technological lead, and potential for AI breakthroughs like AGI, Nvidia presents a lucrative opportunity. Investors can take advantage of this dip to add to their position in this AI juggernaut.

An expert team of analysts is issuing “Double Down” stock recommendations for companies that are primed for growth. Past recommendations like Nvidia, Apple, and Netflix have shown significant returns. Don’t miss out on this opportunity to invest in potential high-growth stocks before it’s too late.

Disclaimer: The author has positions in Microsoft and Nvidia. The Motley Fool recommends companies like Advanced Micro Devices, Alphabet, Amazon, Microsoft, and Nvidia. Make sure to consider the views and opinions expressed by the author before making any investment decisions.



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