"Nvidia stock might be stalling, but the business isn't. If you don't look at the stock chart, I think it's safe to say that Nvidia, the company, is actually firing on all cylinders. It's operating at a very high level, and it's continuously raising the bar across the industry. The legend that is Jensen Huang has the vision and execution to keep the firm ahead in this AI arms race."
"With an enviable gross margin (well above the 75% mark at the time of this writing), Nvidia truly is a standout when it comes to hardware. These are closer to software margins, which, I think, is quite absurd. While there's definitely the software aspect that adds to the Nvidia walled garden, the business demonstrates exceptional profitability and competitive advantage."
"It's a more than $4 trillion company now, and another doubling of the share price would take it to nearly $9 trillion. That seems a bit outlandish, especially since a bulk of the AI training opportunity is already in the rearview mirror now. Even with all the bullish tailwinds behind the firm as well as the AI revolution at large, it's hard to justify buying after a 1,300% gain in five years."
Nvidia stock has hit a valuation ceiling and may remain stalled until the next earnings cycle, though GTC 2026 could bring surprises like a hyper-efficient inference chip. The company's market cap exceeds $4 trillion, making further doubling seem unrealistic. While AI training opportunities have largely passed, emerging agents and robots present inference opportunities. Despite bullish tailwinds and CEO Jensen Huang's strong execution, the stock's 1,300% five-year gain makes current valuations difficult to justify. However, the underlying business remains exceptionally strong, with gross margins exceeding 75%—comparable to software companies—demonstrating Nvidia's operational excellence and competitive moat in the AI chip industry.
Read at 24/7 Wall St.
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