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Nvidia (NASDAQ: NVDA) may face challenges in the coming years due to potential tariffs on semiconductors, as indicated by President Trump, who mentioned that such tariffs could arrive “very soon.” Currently, Nvidia relies on Taiwan Semiconductor Manufacturing for chip production, and tariffs could increase costs significantly, impacting sales, particularly in China amidst ongoing trade tensions.
While the tech sector, including companies like Microsoft, has shown signs of tightening budgets for data centers, Nvidia remains well-positioned in the artificial intelligence market. The company controls approximately 70% to 95% of AI processors, and major tech firms are expected to invest $320 billion in AI technologies this year alone, indicating continued demand for Nvidia’s products.
Analysts suggest that despite the uncertainties, Nvidia’s stronghold in AI processing could lead to growth, although large gains similar to previous years are less likely. The ongoing AI boom is expected to fuel demand for advanced data centers, positively impacting Nvidia’s sales over the next five years.
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