Nvidia(US:NVDA) Forbes·2025-12-09 15:10Core Viewpoint - Nvidia's stock performance is being closely monitored as demand for AI fuels its growth, but there are significant risks that could impact its future performance [2][4]. Financial Performance - Nvidia's revenue has increased by 65% over the last 12 months, rising from $113 billion to $187 billion, with quarterly revenues up 62.5% to $57 billion from $35 billion year-over-year [9]. - The company's operating income for the past 12 months was $110 billion, resulting in an operating margin of 58.8% and a cash flow margin of 44.4%, generating nearly $83 billion in operating cash flow [10]. Market Position and Valuation - Nvidia has a market capitalization of $4.5 trillion and is a key player in providing graphics, computation, and networking solutions across various sectors, including gaming and data centers [6]. - The stock is viewed as having a very high valuation, which raises concerns about potential volatility in the event of earnings misses or market sentiment shifts [3][7]. Risks and Challenges - Nvidia's heavy reliance on data-center GPU demand poses a risk, as any slowdown in AI spending by major customers could significantly impact revenue [4]. - Competition is intensifying from companies like AMD, Intel, and custom chips from Amazon and Google, which could reduce Nvidia's market share [4]. - Regulatory risks are increasing, particularly due to U.S. export restrictions affecting sales to China, a historically significant market for Nvidia [4]. Historical Stock Performance - Nvidia's stock experienced a peak-to-trough decline of 66.4% from $33.38 on November 29, 2021, to $11.23 on October 14, 2022, compared to a 25.4% decline for the S&P 500 [14]. - The stock rebounded to its pre-crisis high by May 25, 2023, and reached a peak of $207.04 on October 29, 2025, currently trading at $185.55 [14].