Nvidia: Selloff Overdone, Huawei 910D Can't Compete

Nauman Khan
91 Followers
(15min)

Summary

  • Nvidia remains a leader in AI chips, despite competition from Huawei's 910D, due to its strong ecosystem, software stack, and manufacturing capabilities.
  • Nvidia's financial health is robust, with consistent earnings beats, strong revenue growth, and significant stock buybacks, making it an attractive investment.
  • Trade tensions and rising competition pose risks, but Nvidia's deep partnerships with major cloud providers and upcoming Blackwell chips provide strong growth catalysts.
  • Nvidia's stock is down 30% from its peak, offering a discounted entry point for long-term growth, justifying a "Strong Buy" rating.

Nvidia HQ

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Last week, tech giant Nvidia (NASDAQ:NVDA) faced fresh pressure after news emerged that Huawei has asked some Chinese companies to conduct tests on its 910D AI chip, which is expected to surpass Nvidia’s renowned H100 chip. Although Nvidia

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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