NVIDIA (NVDA) Could Be 20% Undervalued As AI Growth Narrative Holds - simplywall.st

NVIDIA (NVDA), as a key player in AI infrastructure, has drawn renewed attention following Microsoft's acceptance of its GB300 NVL72 hardware for the Horizon 1 data center, offering a real-world valid... Read original →

NVIDIA's leadership in AI infrastructure is reinforced by Microsoft's acceptance of its GB300 NVL72 hardware, strengthening its position in data center compute and deepening the GPU-CUDA ecosystem integration. This development accelerates demand for AI training and inference capabilities, driving upstream semiconductor and materials supply chains. However, ongoing U.S. export controls pose supply chain risks, particularly affecting operations in Taiwan, China and Hong Kong, China. In competitive dynamics, AMD is intensifying pressure in the data center GPU market, though NVIDIA's software moat and high-margin model sustain its dominance. Over the next 12–24 months, the AI compute boom will shift toward a 'long tail' phase, where market consolidation gives way to multi-vendor collaboration. Nevertheless, NVIDIA’s first-mover advantage and ecosystem lock-in remain pivotal in shaping the industry’s trajectory.