Should You Worry About Nvidia's Challenges in China? History Offers a Compelling Answer.

Last year, Nvidia's (NASDAQ: NVDA) cup of good news seemed to constantly be overflowing. The artificial intelligence (AI) chip leader spoke of "insane" demand for its newest chip architecture, delivered quarter after quarter of explosive revenue growth, and scored an invitation to join the Dow Jones Industrial Average (DJINDICES: ^DJI). And the stock posted a 171% annual gain, for the best performance in that elite benchmark.However, this year has gotten off to a rocky start for this formerly high-flying stock. The company still is seeing enormous demand for its products and generating impressive revenue growth, but external forces have put pressure on share performance. Like other growth stocks, Nvidia has slipped amid concern that President Trump's tariffs may lift prices on various goods, hurting corporate profits and the economy.On top of this, Nvidia faces growing challenges in China, a market that represented 19% of the company's data center revenue in fiscal 2023 -- that already declined to 14% in fiscal 2024 due to the U.S. government's controls on technology exports to the Chinese market. This along with new headwinds represent a risk for Nvidia -- but how much should you really worry about these issues? History offers us a compelling answer.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool