Could Nvidia Reach Another All-Time High? Analysts Are Watching One Key Number - AOL.com

Nvidia, the world's most valuable company with a market cap of $5.18 trillion, has seen its stock price surge by approximately 1,280% over the past five years. Despite strong quarterly sales and earni... Read original →

Nvidia’s 75% gross margin reflects ecosystem dominance, not just technical prowess. However, the rise of custom ASICs—led by hyperscalers like Google and Amazon—is eroding reliance on CUDA, undermining its GPU moat. This shift pressures TSMC to reallocate 3nm/EUV capacity beyond Nvidia, weakening its foundry priority. Geopolitically, U.S. export controls temporarily shield pricing power but accelerate China’s RISC-V and domestic AI chip push, fragmenting global supply chains and raising costs. AMD is gaining ground in edge inference with MI300, while Intel’s potential 18A success could disrupt the training chip market via Gaudi3. Over the next 12–24 months, Nvidia’s valuation hinges not on top-line growth but on monetizing software layers—compilers, libraries, and toolchains. Without that, margin compression will force a painful market cap correction.