Predict where a company could be in five years is not an exact science, to say the least. This in the midst of pricing uncertainty and a potential economic slowdown exacerbates the difficulty.
But if you plan to buy the semiconductor giant Nvidia (Nvda -5.88%))It is important to browse some of the potential results in the coming years, however. It is only by evaluating some of the advantages and disadvantages that you can know if you will feel comfortable buying and holding the actions of the business in the long term.
This is what could go wrong with Stock Nvidia Over the next five years and what could well happen.
Image source: NVIDIA.
Storm clouds
So far, President Trump price excluded the semiconductors, but he said that this may not be the case forever. He told a group of journalists a few days ago that the semiconductors’ prices arrived “very soon”.
It should be noted that Trump fell to certain pricing threats in the past, including a large concession on Wednesday. There is therefore no knowledge with certainty if the prices on semiconductors will never come. For its part, Nvidia does not make its internal processors and is rather based on Manufacture of Taiwan semiconductors For that.
However, if prices are applied to semiconductors, it would be bad for Nvidia. NVIDIA should absorb higher costs by selling its chips to customers or passing the cost. Companies in China also buy many NVIDIA transformers. The United States and China currently in a trade war, sales of semiconductors could be swept away in turmoil.
There are also other potential problems for Nvidia. If an economic slowdown occurs, technology giants could withdraw new expenses from expensive and costly data center. Microsoft Particularly recently fell from two artificial intelligence data center projects.
If more companies do the same, it could slow down sales of Nvidia processors, which exploded because the technology giants have invested hundreds of billions of dollars to build advanced data centers for AI.
The silver lining
I do not want to minimize the price uncertainty or its potential implications for Nvidia’s affairs, but the reverse is that the prices will probably be paid. A lot may change over the next five years.
It is difficult to see the past what is happening today, but it should be remembered that five years in the past, we have just started the COVVI-19 pandemic. Many has changed since then.
Just as important, most technological companies have not indicated that they wanted to retreat from their data center expenses. The CEO of Nvidia, Jensen Huang, thinks that spending could increase to 2 dollars by 2030. Even with Microsoft which fell from two projects of data centers, nothing indicates that a withdrawal of sectoral expenses occurs. Amazon,, Meta,, Alphabet, And Microsoft intends to invest $ 320 billion this year in artificial intelligence technologies and data centers. It’s just this year.
The point to remember here is that these technological companies consider AI as one of the most consecutive technologies to come for decades. They have no incitement to miss this or let their rivals exceed them. The AI race will probably feed the expenditure of the data centers and the need to upgrade the processors for the coming years, which has led to an increase in sales of Nvidia.
The most likely result
There are two very important things to consider when we think of Nvidia at the moment: we are still at the beginning of the AI boom, and Nvidia is the designer of prevailing chips for AI.
Nvidia processors represent around 70% to 95% of AI processors. This thread will not be easily overcome. And with an artificial intelligence race that starts just, I think it is premature to assume that technological companies interrupt expenses. The objective of large technological companies on the offer of the best IA services will probably be a boon of Nvidia processor activities for the coming years.
Will NVIDIA’s actions see similar gains of 1,400% as it has done in the past five years? Very doubtful. However, with its main position in AI processors, I think it still has the potential to exceed the larger market over the next five years.
Chris Neiger Has no position in the actions mentioned. The Motley Fool has positions and recommends Microsoft, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: Long January 2026 Calls $ 395 on Microsoft and Court January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.