- Nvidia Corporation’s stock has dipped to $134.25 despite record highs post-Q3 results; analysts suggest buying the dip, but I see risks.
- Corporations such as Apple will always seek multiple suppliers to avoid overreliance, which could pressure Nvidia’s future profitability despite current demand.
- Many big tech companies are developing AI chips, potentially breaching NVDA’s market dominance and impacting its margins.
- Individual investors should consider reducing exposure to manage risk, as the stock price will likely decline substantially before Nvidia’s loss of market dominance becomes public consensus.
Nvidia Corporation’s (NASDAQ:NVDA) stock has dipped in the past few weeks since its Q3 financial results were announced on November 20, 2024, despite briefly reaching record highs shortly after the Q3 financial results, the stock price is now down to $134.25 as of December 13, 2024.
Many analysts (both on Seeking Alpha and on Wall Street) are suggesting this is a time to buy the dip. Recent news indicates otherwise to me.
Just like the proverbial barbarians knocking at the gates of Rome (for many times during Rome’s history before the fall of the Western Roman Empire in 476 AD), there are many indications of competitors making fervent attempts at breaching NVDA’s moat and my assessment is that they are more likely than not to get through.
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