Wide Gap in Views of Nvidia's China Risk

NVIDIA's Strengths and Opportunities - NVIDIA's vertical integration, software stack, and developer ecosystem are key strengths [1] - NVLink is an unprecedented secret weapon for NVIDIA's GPU performance [2] - Data center revenue, especially networking, may positively surprise the market [3] - Significant opportunities exist in the broad market due to incentives from the EU and Korea [4][5] - There is substantial headroom for AI growth as many countries have not yet seen AI adoption at scale [11] NVIDIA's Challenges and Future Outlook - NVIDIA needs to continue reinventing itself as competition in scale-up networking is expected in 2027 [9] - Broadcom and open-source consortiums will challenge NVIDIA's dominance in scalable networking [9] - The company needs to address concerns about China orders and shipments [6] - The market anticipates NVIDIA to provide an outlook to 2026 and assurances of positive orders from hyperscale cloud service providers [4] - The industry should not judge AI based on first-generation technology, as it is improving dramatically and driving demand for computing [13][15]