Nvidia (NVDA) Stock Prediction & Analysis: Buy the Dip or Beginning of the End?

Nvidia (NVDA) Stock Prediction & Analysis: Buy the Dip or Beginning of the End?

TLDR

• Nvidia stock has declined 18% year-to-date despite being the dominant AI GPU provider
• CoreWeave IPO disappointment and Trump’s potential tariffs are contributing to market concern
• Nvidia controls approximately 98% of enterprise data center GPUs but faces competition from clients developing their own chips
• The company’s exceptional growth might slow as AI-GPU scarcity decreases and upgrade cycles lengthen
• Despite recent decline, some top investors see the dip as a buying opportunity with Blackwell Ultra and Dynamo as future catalysts

Nvidia, the undisputed leader in AI GPU technology, has hit a rough patch in 2025. The company’s stock has fallen 18% year-to-date after stellar gains in previous years.

The decline comes amid growing concerns about the sustainability of Nvidia’s rapid growth trajectory. These worries stem from multiple factors affecting the market’s perception of the AI giant.

Nvidia’s rise has been remarkable. The company grew from a $360 billion business at the end of 2022 to nearly reaching a $4 trillion market cap just over two years later.

At the core of Nvidia’s success are its Hopper (H100) and next-generation Blackwell GPUs. These chips have become the standard in AI-accelerated data centers over the past two years.

No other chipmakers have come close to challenging the all-around functionality of Nvidia’s hardware. While some competitors offer narrow advantages in certain tasks, none have truly matched the computing performance of Hopper or Blackwell in AI-accelerated data centers.

Nvidia has benefited from AI-GPU scarcity. Despite efforts by Taiwan Semiconductor Manufacturing to expand capacity, demand has overwhelmed supply. This has allowed Nvidia to command a 100% or greater price premium for its AI-GPUs.

The company’s CUDA software platform has been crucial in keeping clients within its ecosystem. This toolkit helps developers maximize GPU performance and build large language models.

According to semiconductor firm TechInsights, Nvidia accounted for 98% of GPUs shipped to enterprise data centers in 2022 and 2023. Even with competitors like Advanced Micro Devices ramping up production, Nvidia likely maintained near-monopoly market share last year.

CoreWeave IPO

However, several challenges are emerging. The disappointing IPO of CoreWeave, a rapidly growing AI company whose revenue comes entirely from cloud rental of AI servers powered by Nvidia chips, has raised concerns. CoreWeave’s shares priced below their expected range and finished their first trading day unchanged.

President Donald Trump’s team is reportedly considering higher tariffs ahead of a Wednesday deadline. This news has contributed to a broader market slump, with Nvidia retreating 3.4% to $106 in Monday’s premarket trading.

There are also concerns that Nvidia might become a victim of its own success. The computing superiority of its chips might dramatically slow down future upgrade cycles. With hardware that’s both pricier and faster than peers, companies may delay upgrading their AI data center hardware for years.

Many of Nvidia’s top customers, primarily members of the “Magnificent Seven,” are internally developing AI-GPUs for their own data centers. While these chips aren’t threats to Hopper or Blackwell’s computing speed, they could cause Nvidia to lose future data center market share.

If upgrade cycles become more drawn out or Nvidia loses data center real estate to its own customers, its biggest advantage – AI-GPU scarcity – could disappear. This would mean less pricing power and weaker future margins.

Analysts Remain Bullish

Despite these challenges, some investors remain bullish. Top investor Rick Orford points to Nvidia’s outstanding recent results and believes AI adoption is still in early stages. He sees the recent pullback as a “rare opportunity hiding in plain sight.”

Nvidia recently unveiled its Blackwell Ultra chip, described as the most advanced AI computing platform ever created. It boasts 70 times the AI performance of the previous Hopper GPU Architecture.

The company also launched Dynamo, an open-source library that optimizes the scalability of AI reasoning models across GPU clusters. This innovation could significantly boost demand for Nvidia’s AI GPUs if widely adopted.

Wall Street analysts remain optimistic overall. The consensus among analysts is a Strong Buy rating, with 39 Buys versus just 3 Holds. The average price target of $176.54 suggests a potential upside of about 61% for the year ahead.

As of Monday’s premarket trading, Nvidia stock was at $106, down from its recent highs. The company’s future performance will likely depend on how it navigates the challenges of maintaining growth in an increasingly competitive landscape.

The post Nvidia (NVDA) Stock Prediction & Analysis: Buy the Dip or Beginning of the End? appeared first on CoinCentral.