Nvidia's slowdown is due to the law of large numbers - Top AI Leadership.
Nvidia Corporation's performance in the third quarter of 2025 doubling compared to the same period last year, and the promising outlook for the fourth quarter of 2025, clearly shows that Nvidia remains a leader in AI competition.
Although growth appears to be slowing down, readers should note that this is simply due to the law of large numbers as consensus forecasts are being raised for the future.
Instead, as the adoption of AI accelerates across large technology companies, SMEs, and governments, Nvidia may continue to benefit from this super cycle of cloud computing.
The number of AI startup companies is projected to swell to 70,710 by 2024, and market analysts expect the AI market to grow to $826.7 billion by 2030 at a CAGR of +28.4%.
There may be risks due to strengthened trade regulations and dependence on major hyperscaler customers, but we believe that NVDA could continue to be a key player in the AI boom spanning several years.
Although growth appears to be slowing down, readers should note that this is simply due to the law of large numbers as consensus forecasts are being raised for the future.
Instead, as the adoption of AI accelerates across large technology companies, SMEs, and governments, Nvidia may continue to benefit from this super cycle of cloud computing.
The number of AI startup companies is projected to swell to 70,710 by 2024, and market analysts expect the AI market to grow to $826.7 billion by 2030 at a CAGR of +28.4%.
There may be risks due to strengthened trade regulations and dependence on major hyperscaler customers, but we believe that NVDA could continue to be a key player in the AI boom spanning several years.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
NOIR(のあ) : Thank you for always providing various information. Regarding the keyword "law of large numbers" in this information, I didn't know much about it beyond the realm of probability theory, so I did a little research. In this information, it seems to be used metaphorically. The reason why the growth rate appears to be declining can be explained as follows:
When the original scale is small
For example, if a company's sales were initially 1 billion yen, an increase of 1 billion yen would make the growth rate appear to be 100%.
When the scale becomes larger
Even if the sales increase by 1 billion yen, if the original sales were 10 billion yen, the growth rate remains at 10%.
In other words, the perception of growth "slowing down" only appears because when the scale increases, the growth rate seems smaller even with the same increase amount. Essentially, it is correct to understand that the business is likely steadily expanding.
This is a very important point, for example, when looking at monthly candlestick charts, you might think that stocks that are skyrocketing are just waiting for a fall if you take a short-sighted view, but is that really the case? Since July, semiconductor stock prices have been on a downtrend. It's different to say that NVDA is in the same sector or not. I always say it's purely an AI market. There is, of course, risk in future stock prices, but they are likely to rise, right? If you imagine that even the world's largest market cap company may not have much growth potential, do you really understand the value of NVDA? I am quite a believer, but which stocks would you buy without holding such stocks? I think maybe long-term investors have a similar mindset to mine (laughs), there's no sense of being overpriced in stock prices and the target prices based on analysts' analysis are high. There are doubts about the return on investment in hyperscalers, but don't you think big tech companies don't make wasteful investments? AI will advance rapidly in the coming year or two. At the center of this is NVDA. For AI, if you're not using ChatGPT, make sure to use it. Copilot or GEMINI will work fine too. They are so convenient. I use them every day at work.
Kimihiko OP NOIR(のあ) : Thank you for the wonderful comment!
Hide0911 : It's not a Bybline, so the growth rate will not decrease gradually, or else the universe will be destroyed by a chestnut bun.