Nvidia trades at its cheapest valuation since pre‑AI boom (NVDA:NASDAQ) - Seeking Alpha

NVIDIA's stock price has recently experienced a significant correction, falling to its lowest valuation since before the AI boom, despite the company's strong growth prospects in the artificial intell... Read original →

NVIDIA’s valuation retreating to pre-AI-boom levels reveals deeper fragility in the AI chip ecosystem. Technically, GPU scaling is hitting physical limits, prompting hyperscalers to adopt custom ASICs and sparse architectures—eroding the indispensability of general-purpose GPUs. On compliance, U.S. export controls compel NVIDIA to sell downgraded H20 chips for China, compressing margins and accelerating domestic alternatives like Huawei’s Ascend and Cambricon. AMD and Intel are capitalizing on this, expanding MI300 and Gaudi3 deployments in sovereign-backed data centers across Europe and the Middle East. Over the next 12–24 months, the sector will undergo 'de-bubblization': capital shifts from NVIDIA-centric bets toward diversified compute portfolios. Winners will be firms mastering advanced packaging (e.g., CoWoS) and memory-bandwidth co-design—Micron among them. This correction isn’t a crash; it’s the hard-tech market realigning with engineering reality.