Nvidia (NASDAQ: NVDA)'s share price has seen huge price swing in 2025. After reaching to the high of 153.13, this blue chip stock has fallen down to 95-100 as of April 8. Has the stock hit bottom or can it go down further? Here we break down the bull and bear cases.
The Bull Case: AI Dominance and Unmatched Innovation
AI Leadership Isn’t Going Anywhere
Nvidia is big established player of AI hardware and a blue chip company. GPUs are what power ChatGPT all the way to autonomous vehicles and the demand shows no signs of slowdown. Fiscal 2025 revenue shot up 114% to $130.5 billion.
Nvidia’s latest architecture promises 4x faster training and 30x faster inference speeds than its predecessor.
The Bear Case: Macro Risks and Execution Challenges
1. Tariffs and Macroeconomic Headwinds
President Trump’s 'Liberation Day' tariffs, have impacted stocks. Although Nvidia is less exposed than Apple or Tesla, pressure from a broader market that simply slows with uncertainty fears is likely to contribute to volatility. Semiconductor stock is a cyclical sector, and a recession would devastate both Nvidia's data-center and gaming segments.
2. Can Growth Stay Supercharged?
Nvidia's revenue growth is expected to be 33% YoY in 2026. This is far from the 114% growth of 2025. AMD and Intel are all in on closing the AI gap, and hyperscalers may one day design in-house chips to lessen dependency on Nvidia.
The Big Picture: Why Patience Could Pay Off
Nvidia isn’t merely a manufacturer of chips, it’s the tech that powers AI. Three emerging trends could drive its next leg up:
AI Agents for Enterprises: Autonomous AI workflows that boost productivity.
Physical AI for Robotics: Training robots by simulating the physics of the actual world.
Sovereign AI: Governments building domestic AI infrastructure. Nvidia’s full-stack solutions are well-positioned to win contracts governmental contracts.
The Bottom Line: Is Nvidia a Buy?
Short-term turbulence is inevitable. Tariffs and Fed policy will keep the stock volatile. But for long-term investors, Nvidia’s technological moat, reasonable valuation, and $2.4 trillion TAM(total addressable market) in AI make it a compelling buy.
Final Thought
The AI gold rush is still nascent. While chips and software will both profit, Nvidia remains the best-in-class chips supplier. At today’s prices, betting against Huang’s vision seems riskier than riding the dip.
(Source - Nvidianews, Morningstar, Wccftech)
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