Nvidia: Sailing Against the Wind on the Path of Growth

Welcome to follow me, let's communicate together！

Nvidia, known for its growth, faces scrutiny as its latest financial report shows slower growth and stock price swings, prompting the question: Is this a bubble in the making or a minor setback?

Nvidia's latest financial report shows a slowdown in year-on-year revenue growth. This slowdown is undoubtedly a test for a market accustomed to high-speed growth.

However, looking at the entire AI industry—from the explosion of GPT to now—the industry is still in its early stages of development. Nvidia's major customers, including Meta, Microsoft, Amazon, and Google, continue to increase capital expenditures on AI chips and cloud deployments, indicating strong downstream demand.

Facing intense market competition, can Nvidia continue to maintain its leading position? Currently, Nvidia remains unmatched in the field of AI chips.

Although competitors like AMD, Intel, and others are catching up, Nvidia's products are in high demand, and their inventory turnover and accounts receivable turnover rates demonstrate their strong position upstream and downstream.

Moreover, Nvidia's continued investment in research and development, along with its powerful CUDA software platform, have built a solid ecological barrier for the company.

So, does the slowdown in Nvidia's growth signify the burst of a bubble?

From a historical perspective, Cisco's stock price plummet during the dot-com bubble period left a deep impression on investors.

However, the era and industry landscape in which Nvidia and Cisco operate are different. The commercialization of the AI industry is just beginning, and Nvidia, as a provider of tools to miners, holds the greatest influence in the industry's early stages.

Furthermore, Nvidia's downstream customers like Google, Amazon, and others, while developing their own chips, do so more for cost and influence considerations rather than a lack of trust in Nvidia's technology.

The future holds whether Nvidia will sustain its AI industry edge or confront a bubble. What's clear is that its AI leadership and ongoing R&D are solidifying its future growth.