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.

Original post →

More from Venture

• Menlo Ventures discusses Anthropic, Lovable’s $13B valuation and $3B carry — mmurph · 2026-07-27
• Enigma raises $70 million to simplify robot control — luisdans · 2026-07-27
• Indie founder says launching on Product Hunt is a waste of time — filiksyos · 2026-07-27
• OpenAI and Anthropic are scaling revenue fast while margins expand, a rare AI-compute signal — BenBajarin · 2026-07-27
• Ropedia raises $30 million to build data infrastructure for physical AI — liuziwei7 · 2026-07-27
• US companies shift workloads to Chinese models as token prices plunge — Justgototheeffinmoon · 2026-07-27

Venture channel →