NVIDIA's stock price hits a new high! But the market is starting to worry: Has the stock price peaked?
The most intense wave of the AI boom has passed, but competitors are emerging one after another! Is it possible that NVIDIA's AI chip, priced at $30,000, won't sell? Can they sustain their 90% market share? Deutsche Bank advises investors to wait for a more favorable opportunity to enter the market when NVIDIA's stock price pulls back.
Overnight, Nvidia announced further cooperation with Google, causing its stock price to rise by 4% to reach a new high, and its market value to reach $1.2 trillion for the first time.
Throughout this year, Nvidia has brought many surprises to the market, both in terms of stock performance and financial results.
However, after Nvidia's stock price surged more than 233% this year, the market has started to worry if it has reached its peak. Does Nvidia, which just announced impressive performance, also have risks?
On one hand, the market is primarily concerned about whether Nvidia can continue to thrive now that the peak of the artificial intelligence (AI) wave has passed.
Some independent analysts believe that the current benchmark price for generative AI services such as ChatGPT is around $20 per month, but this is likely unsustainable. Considering the free version provided by the open-source community and the greater need for traffic among startups, the price of generative AI is expected to settle at around $20 per year.
Therefore, the question arises as to whether customers will still spend $25,000 to $30,000 to purchase Nvidia's highest-end AI chips.
Deutsche Bank also predicts that at some point, Nvidia's data center customers will slow down their chip purchases to digest existing inventory. Therefore, the bank advises investors to wait for Nvidia's stock price to pull back to a more favorable level before entering the market.
On the other hand, Nvidia currently dominates the AI chip market, but can it maintain a market share as high as 90% forever?
It should be noted that AMD has also launched the MI300 as a competitor, which may take advantage of Nvidia's supply chain limitations to seize market share. Moreover, Google, Apple, Amazon, and other major customers of Nvidia all have their own custom chips, which means they could become competitors.