Nvidia’s stock just dipped slightly, but don’t let that minor move fool you. Behind the scenes, the AI chip war is heating up.
While AMD and Super Micro Computer just posted solid earnings and reinforced that demand for AI chips is still very real, they also pulled the curtain back on growing risks: export bans, supply constraints, and an infrastructure arms race.
What does this ideally mean?
Nvidia Stock at a Glance
Nvidia (NVDA) closed just 0.21% down on Wednesday, trading around $113.30, a minor move considering it soared 171% in 2024.
That’s not just good, it is clear dominance. Investors who bet on AI? They’ve been feasting.
And yet, even this tiny pullback is enough to raise a question: Is Nvidia stock still a good buy in 2025.
Its Growth is Still Monster-Sized
Despite geopolitical noise, Nvidia remains the undisputed heavyweight in AI chips, owning up to 95% of the market. In 2024, its data center revenue exploded 217%, hitting $47.5 billion.
And the tailwinds are just getting started. The AI chip market is expected to hit $311 billion by 2029. Nvidia’s revenue is projected to grow at 22% annually. Earnings could climb 22.7% per year over the next five years
Wall Street’s not done with this story.
Now, Here’s the Tension Point
CEO Jensen Huang says Nvidia is losing access to a $50 billion opportunity thanks to U.S. export controls.
And while Nvidia has tried to tailor chips specifically for the Chinese market, the geopolitical roadblocks could limit their scale there, at least in the short term.
Still, the company is shifting focus to infrastructure buildouts in the U.S., Europe, and India, where demand for AI computing is booming.
Is the Valuation Too Hot?
The only red flag is that Nvidia’s forward P/E sits around 58.
That’s rich, even for a growth stock. It means investors are already pricing in years of continued dominance. So if Nvidia stumbles, the fall could be sharp.
That said, its free cash flow, margin dominance, and sheer brand power in AI give it a strong moat. And as AI moves from buzzword to backbone, Nvidia is positioned to keep riding on.
If you’re a long-term investor, a small pullback like this could be a strategic entry point. But if you’re looking for value or short-term trades, wait for a steeper discount or a broader market reset.
