Why I'm Still Holding Nvidia (NVDA) Stock Despite Its Sky-High P/E Ratio - Yahoo Finance

Despite NVIDIA's sky-high P/E ratio, investors remain optimistic about its stock. The article highlights that NVIDIA has delivered an average annual gain of 63% over the past decade, turning a $10,000... Read original →

NVIDIA's dominance in AI data center chips has triggered a cascading effect across the semiconductor supply chain, from advanced manufacturing to cloud infrastructure, as demand for compute power surges. However, the company's premium valuation is underpinned by geopolitical and supply chain vulnerabilities, especially amid U.S.-China tech decoupling and constraints on advanced fabrication in Taiwan, China. Competitors like AMD and Intel are aggressively expanding their AI chip portfolios, attempting to challenge NVIDIA’s market leadership through heterogeneous computing and ecosystem partnerships. In the next 12–24 months, as AI applications shift toward edge computing, NVIDIA must maintain its ecosystem leadership to avoid declining growth momentum. While investor confidence remains strong, the sustainability of its valuation hinges on its ability to continue driving compute innovation.