Nvidia Q1 Preview: Competition Is Now Real (Rating Downgrade)


  • Nvidia Corporation’s strong FY 2024 has made it one of the most valuable companies globally, but competitive pressure from companies like Google, Meta, Intel, and AMD could impact its market share.
  • Intel’s new AI accelerator chip, the Gaudi 3, poses a significant threat to Nvidia’s flagship GPU, offering better performance and competitive pricing.
  • AMD is gaining ground in the market, with Microsoft hosting models on its MI 300X chips, increasing competition for Nvidia.

Nvidia Corporation building in Taipei, Taiwan.


Investment Thesis

NVIDIA Corporation (NASDAQ:NVDA), arguably the leading company in the AI GPU sector, has had a strong FY 2024, with Q4 revenue growing by 265% year-over-year. The company’s valuation, with a market cap of around $2.3 trillion, places them

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Noah Cox (account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.

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