Why Nvidia’s valuation multiple is under pressure as TPU, Trainium and memory rivals rise
RihardJarc · x · 2026-07-27
- The post lays out several reasons the market may be assigning Nvidia a lower multiple than the bulls expect.
- Key arguments: hyperscalers could eventually shift more volume to TPUs, Trainium, MI400, and other in-house ASICs if supply allocation changes; Nvidia’s investments in neoclouds may be a way to accelerate demand; and memory makers / other elastic but indispensable parts of the semi stack could be a better way to play prolonged compute scarcity.
- It also argues that competition at the chip-design layer has expanded materially over the last year, making a long-term 75% gross margin for Nvidia less certain.
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