Key Points
Nvidia (NASDAQ: NVDA) faces challenges in the first half of 2025 due to ramping competition, potential tariffs, and trade restrictions with China. However, the company is poised for growth with several catalysts in the second half of the year, including advancements in sovereign AI, the introduction of Blackwell chips, and potential sales in China.
Nvidia is the leading provider of AI-centric chips and benefits from rising investments in AI infrastructure. The European Union plans to build five AI gigafactories across member states, and 20 countries are developing their own AI capabilities. Additionally, data center operators are expected to spend $315 billion on capital expenditures this year, primarily on AI, lifting Nvidia’s prospects.
Nvidia has applied for licenses to sell its H200 chips in China, with estimates indicating potential sales could reach nearly $10 billion per quarter. If successful, this could significantly boost Nvidia’s revenues in the second half of 2025.
