Where Will Nvidia Stock Be in 10 Years?

Long-term investing is the key to sustainable returns in the stock market because it smooths out short-term volatility and allows a company's fundamental value to shine through. Tech giant Nvidia (NASDAQ: NVDA) has been at the forefront of generative artificial intelligence (AI) growth. But as the hype inevitably fades and new opportunities like robotics and self-driving cars potentially have their turn in the sun, how will Nvidia respond?With roughly 88% of revenue ($30.8 billion) coming from its data center segment, Nvidia is very overexposed to the market for generative AI hardware. This under-diversification puts the tech giant in a perilous position, especially as clients continue to lose money on their AI projects and new low-cost rivals like China's DeepSeek cause shareholders to question the industry's long-term profit potential.The growing popularity of custom chips also allows key AI clients like OpenAI to bypass Nvidia and design their own hardware through partnerships with fab companies like Taiwan Semiconductor Manufacturing.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool