$NVIDIA Corp(NVDA)$ is undeniably the market leader for the most powerful artificial intelligence chips highly sought after to build, train and deploy artificial intelligence models by numerous companies around the globe. I believe that the industry is still in an early stage of AI adoption when companies are testing their AI products and services. Nvidia is currently the leader in the AI chips industry with an 84% market share and will have a long runway for further growth as AI adoption grows over time. While $Advanced Micro Devices(AMD)$ has been playing second fiddle to the AI behemoth maker and wrestling with $Intel(INTC)$ to capture the remaining market share of the AI chip demands left behind by Nvidia, I believe that the fast-growing AI market will be able to accommodate the trio.
A rebound may be in sight for the Chinese EV startup trio $NIO-SW(09866)$ , $XPENG-W(09868)$ and Li Auto, as the Chinese EV industry set its eyes to dominate the global market. With the prevailing price war easing, hopefully, this will reverse the downward spiral in profit margins among the Chinese EV makers and help to improve their profitabilities. With the improving Chinese economy, I expect the trio's deliveries of new EVs to improve over time as well. Furthermore, the Chinese EV trio has already been turning their eyes to foreign markets for diversification and growth. Hence, I believe that their prevailing stock price weaknesses in the near term present buying opportunities for long-term growth of the Chinese EV trio.
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Comments
Nvidia's lead in AI chips is impressive, but don't sleep on AMD's potential in this expanding market.
Chinese EV makers might bounce back soon; their expansion into global markets is a smart move.
Nvidia's dominance in AI chips seems unshakable, and I'm bullish on its long-term growth potential.