NVIDIA may look unstoppable, but like every giant, it has weaknesses — and investors are watching closely 👀
First, the chip supply chain is fragile. NVIDIA relies on TSMC (Taiwan Semiconductor Manufacturing Company) to produce its advanced chips. But political tension between the U.S. and China puts Taiwan in a risky position 📉 (Bloom will cover about Tariff war in 2025 soon!)
Second, competition is heating up. Big players like Google, Amazon, and Microsoft are building their own chips. If they stop buying from NVIDIA, that’s a big revenue hit 📉
Third, governments are stepping in. The U.S. has restricted NVIDIA from selling its top-tier chips to countries like China. That could slow down its growth abroad 🌐
And lastly — the stock price is sky-high. With so much hype, even a small earnings miss can cause big dips. When expectations are massive, pressure follows 💥
NVIDIA’s story shows how one bold idea can change the world — and the stock market. But with great hype comes high expectations 🌐
As investors, it’s important to look beyond the headlines and keep an eye on things like market cap (how much a company is worth) and whether the price still reflects real long-term value 📈
AI is exciting, but it’s evolving fast — and not every company riding the wave will stay on top. Be curious, cautious, and informed. The future looks bright, but smart investors stay sharp 🌟
Test your knowledge
What company manufactures most of NVIDIA’s chips?
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Which tech companies are now building their own chips (and competing with NVIDIA)?
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Why did the U.S. government restrict some of NVIDIA’s exports?