Opinion: The Biggest Risk Facing Nvidia Stock, and How the Company Will Solve It
The semiconductor industry has always been cyclical, because whether it's computers, smartphones, or even data centers, consumers and businesses only upgrade their physical hardware once every few years. Since 2023, spending on data center chips and components appears to be growing exponentially, as some of the world's biggest technology companies race to develop the most powerful AI software. Nvidia (NASDAQ: NVDA) has been the biggest beneficiary of that spending boom, because it supplies the most advanced data center graphics processors (GPUs) for developing AI.