I saw the entire situation of worrying about China restrictions as short sighted. The only concern really being China may be forced to develop their own tech. Which would require a monumental effort to displace Nvidia on the world stage. Well, those concerns are calmed for the time being. I expect further rally in Nvidia shares on this news.
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I finally decided to simply hold onto every share I own and buy on every significant pullback, after doing a little swing trading around the edges with NVDA. The best bear arguments keep getting more bullish.
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Nvidia is still a well managed industry leader with 80% market share. They are likely to continue to lead.
One day AI sales may flatten. Nivida has a history of spotting new opportunities and adapting to serve them. They probably get many suggestions for product improvement. They are likely to continue that.
Huge leading market cap is the main concern. Doubling that will not be easy.
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Not only is the market for AI exploding as-is, Nvidia continues to put out new chips that consume less power and do more. This means AI data centers will need to continue to buy the newest version of chips to remain competitive and relevant. Yes, faster chips will allow for more efficient computing meaning you can do more AI with one chip, but the more compute that is able to be done, the more powerful and more useful AI will become. Consider that LLMs such as ChatGTP would not have been possible a few years ago, until more powerful Nvidia chips became available that made it financially practical to develop these LLMs, the future is unknown, and I will continue to buy Nvidia, regardless of market cap. It will remain my number 1 position
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Taiwan Semiconductors also reported good earnings yesterday due to AI chip sales. They also make lots of commodity chips. That sector has held them back for a while.
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