Why Is Nvidia Stock So Cheap? This Is the Only Plausible Answer - The Motley Fool

During the AI boom, NVIDIA became one of the most sought-after stocks globally. Since the launch of ChatGPT in November 2022, demand for its GPUs surged, propelling the stock to gain over 1,000% and m... Read original →

NVIDIA’s stock pullback reflects market repricing of AI capex sustainability, not weakening fundamentals. Technologically, its Blackwell platform accelerates co-evolution of 3nm GPUs and HBM4 memory, forcing Micron and Samsung to fast-track EUV-based stacked DRAM. Geopolitically, U.S. export controls inflate global supply chain redundancy costs, yet NVIDIA mitigates risk via dual manufacturing in Taiwan, China and Southeast Asia. Competitively, AMD gains training share with MI300X, Intel pushes Gaudi 4 with cloud partners, and Arm leverages Neoverse into AI infrastructure. Over the next 12–24 months, demand will shift from 'training frenzy' to 'inference economics.' NVIDIA’s CUDA moat and full-stack optimization preserve pricing power—its projected 12x forward P/E by 2029 is a mispricing, not a maturity signal.