NCSSG
04-05
$NVIDIA(NVDA)$  Let's talk about the elephant in the room: tariffs. The US-China contestation is undeniably putting pressure on NVIDIA's overseas revenue. Here's a quick breakdown:

- Increased Costs: Reciprocal tariffs of 32%-34% on imports from Taiwan and China are driving up production costs, notably for materials like aluminum and steel used in data center hardware.

-Revenue Decline Risk: China, a significant market (up to 20% of NVIDIA's sales), faces retaliatory tariffs and potential export restrictions on key AI chips like the H20. This poses a serious risk to NVIDIA's market share.

-Supply Chain Vulnerability: Tariffs on Taiwan threaten NVIDIA's reliance on TSMC, potentially disrupting its ability to meet global demand.

These are real challenges. However, here's why I remain bullish on NVIDIA in the medium term:

-AI Dominance: NVIDIA's leadership in AI chips is undeniable. The demand for AI solutions is only accelerating, and NVIDIA is positioned to capitalize on this growth.

-Diversification Efforts: NVIDIA is actively diversifying its supply chain and exploring alternative manufacturing options to mitigate tariff risks. This strategic adaptation will strengthen its long-term resilience.

-Data Center Growth: the growth of data centers is not slowing down. The need for the chips that NVIDIA produces is increasing.

Despite the current headwinds, I believe NVIDIA's long-term growth potential outweighs the short-term tariff pressures. For those with a medium-term outlook, now might be an opportune time to consider adding NVIDIA to your portfolio.

Cathie Wood Adds Nvidia! Will You Follow Her Lead?
On Monday, Cathie Wood's ARK Innovation ETF — purchased approximately $14.8 million worth of Nvidia shares, acquiring 151,979 shares based on Monday’s closing price. Would you accumulate NVIDIA or stay in cash?
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Comments

  • NCSSG
    04-05
    NCSSG
    Thanks for comment! It's undeniable that these restrictions present headwinds for Nvidia, potentially impacting production and increasing costs. But there are compelling reasons to maintain a bullish outlook.Nvidia's dominance in the AI chip market is undeniable. The demand for their GPUs remains strong. Nvidia's commitment to technological innovation ensures they are well-positioned to adapt and overcome obstacles. Their consistent investment in r&d allows them to maintain a competitive edge.


    Furthermore, Nvidia is actively working to diversify its supply chain and forge strategic partnerships. they are exploring alternative suppliers and collaborating with industry partners.


    Finally, the long-term growth potential of the AI market remains significant. Nvidia's position as a leader in this space, coupled with government and industry support, provides a strong foundation for continued success. Nvidia's fundamental strengths and adaptive strategies warrant a bullish outlook.
  • Mjs
    04-05
    Mjs
    You should consider micro economy as well. How can Nvidia make its product if it cant get the germanium and gallium supply from China?
  • WendyOneP
    04-07
    WendyOneP
    interesting topic
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