Nvidia's growth slowdown concerns and the bright future of expanding AI investments.

Nvidia's growth rate shows signs of slowing down, but the rapid expansion of the AI market is expected to support the company's long-term growth. While recording a 112% increase in datacenter sales in the third quarter of the fiscal year 2025 compared to the previous year, forecasts of a nearly halved sales growth rate for the following year are affecting investor sentiment.
However, the growth of the AI infrastructure market is an important tailwind for Nvidia. Investment plans by major cloud providers increased by 33.5% compared to the previous year, with the AI accelerator market projected to reach 500 billion dollars in size by 2028. Against this backdrop, Nvidia's overwhelming market share and technological innovation are once again receiving attention.

Considering the development progress of next-generation products and the accelerated demand for AI, short-term stock price declines may be seen as new investment opportunities.

Nvidia has established overwhelming influence in the AI market. The company's ai chip holds an 80% market share, with the H200 and the next-generation Blackwell platform symbolizing advanced technology that balances performance improvement and cost efficiency. The increase in datacenter department sales in the third quarter of the fiscal year 2025 reflects the strong demand from cloud providers, making Nvidia a core player in AI infrastructure investment.
The background of such market dominance lies in the technological superiority and unique pricing strategy built by Nvidia. The company's gross profit margin is 74.6%, extremely high, and it overwhelms other companies in pricing while overcoming supply shortages. This can be attributed to not only the high product performance but also the strategic deployment that anticipates AI demand.
This movement has a significant impact on the entire industry. As cloud operators such as Microsoft and Amazon push forward with massive investments in AI infrastructure, Nvidia's technical prowess has become a leading force among other companies. As the market as a whole enters a growth phase, the technological innovations brought by the company could serve as a guide for other companies.

Nvidia's revenue growth rate is projected to decrease from 111.9% in the fiscal year 2025 to 49.2% in the fiscal year 2026. While this number may initially seem like a warning sign, a deeper look reveals a different perspective. The slowing growth pace of the company is just one example indicating that the AI market as a whole is undergoing a significant structural transformation.
In the short term, this growth slowdown may dampen investor sentiment and be a contributing factor to stock price declines. However, with the AI infrastructure market expanding at over 60% annually and projected to reach $500 billion in size by 2028, there is no need to overly pessimistically view this temporary drop in stock price. Rather, from a long-term perspective considering the company's technological superiority and market share, the current decline could present a new investment opportunity.

Furthermore, as CEO Jensen Huang mentioned, AI advancement is still in its early stages, and broader adoption is expected to continue over the next few years. If the current growth rate slowdown is viewed as an industry transition period, Nvidia's position is likely to become even more robust.

Nvidia's development of next-generation technologies goes beyond mere market dominance and holds the potential to redefine the entire industry. The company's H200 chip and Blackwell platform are not only noteworthy for their performance but also from a cost reduction perspective. In particular, the H200 chip is said to improve inference performance by up to 2 times and reduce total ownership costs by up to 50%.
These technological advancements hold significant importance for both companies and research institutions. For example, major cloud providers such as AWS and Microsoft Azure introducing these technologies will further expand the potential for AI utilization. This is expected to accelerate the development of AI infrastructure, ultimately leading to enhanced competitiveness across various industries.

Furthermore, as the advancement of Artificial General Intelligence (AGI) is predicted, Nvidia's role is considered to become more crucial. With this technological innovation progressing, the demand for AI is expected to skyrocket, potentially triggering a new industrial revolution. How Nvidia responds to this will likely be the key determining its competitiveness in the future market.