Nvidia Faces Mixed Outlook Amid AI Growth and Export Restrictions

While Nvidia continues to lead the AI hardware market, new U.S. export rules and evolving competition present challenges to its long-term growth trajectory.

Nvidia's stock, up 171% in 2024, has fallen into a correction as new U.S. AI export restrictions impact its global market access, including bans on sales to key regions like China and Saudi Arabia.
CEO Jensen Huang highlighted new growth areas such as robotics, automotive AI, and desktop supercomputers during his CES keynote, but some analysts were disappointed by limited updates on core GPU platforms.
The company remains a leader in AI infrastructure, with continued strong demand for its Blackwell GPUs and data center products, which accounted for over 87% of its revenue in the past year.
Analysts have revised Nvidia's price targets, with some lowering expectations for near-term data center revenue but maintaining optimism for long-term AI market growth.
Concerns about a potential tech bubble, fueled by AI hype, have led experts to predict a possible market correction within the next two years, with Nvidia's valuation drawing particular scrutiny.