Market Leader in AI and Data Centers
Nvidia dominates the AI hardware market, with significant demand from data centers and AI developers, driving long-term growth.
Nvidia: Leading a New Industrial Revolution
The mastermind behind AI
NASDAQ:NVDA
$192.85+0.68%
Updated: Nov 20, 2025
Technology
megausa
Bull & Bear Case
An overview of the main reasons to invest and the key risks involved.
Bull Case
Innovative Product Portfolio
Nvidia’s constant innovation, including its cutting-edge GPUs and AI chips, ensures it remains at the forefront of technology development.
Expanding Into New Markets
Nvidia is tapping into emerging markets like autonomous vehicles and sovereign AI deployments, providing diverse revenue streams beyond gaming and data centers.
Bear Case
Competition from New AI Models
The rise of new, disruptive AI models like Deepseek’s could potentially challenge Nvidia’s dominance in the AI sector.
Supply Chain Vulnerabilities
Nvidia’s dependence on third-party foundries makes it susceptible to global supply chain disruptions and chip shortages, with the company noting ongoing near-term tightness in Blackwell GPU supply.
Regulatory Risks
Increased regulatory scrutiny on Nvidia’s acquisitions and market dominance could lead to delays or restructuring of its business strategy.
Executive Summary
Market leader at the forefront of the AI revolution, with unmatched technological innovation, diverse revenue streams, and significant growth potential across high-value industries.
NVIDIA Corporation is a pioneering American technology company specialising in the design of cutting-edge AI chips, known as graphics processing units (GPUs). As the world enters the dawn of the AI revolution, NVIDIA stands at the forefront, driving breakthroughs in generative AI, deep learning, and automation. Nvidia is the company powering this revolution, equipping industries and data centers for a future dominated by AI.
NVIDIA’s influence spans diverse markets, including automotive, energy, healthcare, media, and consumer industries. With a market cap of more than $3 trillion, NVIDIA’s unique combination of advanced technology and diverse revenue streams ensures vast growth is still to come.
Investment Thesis
Overview of buy and sell case of the business.
Why Invest?
Key pieces of information about the business that you need to know about.
Leading the AI revolution
NVIDIA continues to lead the AI race with its Hopper chips and new Blackwell platform. Blackwell is already driving most of the platform’s revenue ramp in Q3, running far faster than Hopper and meeting soaring demand for bigger, smarter AI models . This strength pushed data-centre revenue to a record $51.2 billion, with demand still outpacing supply. With Blackwell targeting a $250 billion market, NVIDIA’s growth story remains firmly intact.
Dominance in Cloud Computing
NVIDIA powers the world’s biggest cloud platforms, from AWS to Azure and Google Cloud. This quarter, cloud demand stayed fully sold out across new and older GPU generations, showing how essential NVIDIA chips have become for AI workloads . Big deployments like Azure’s GB200 rollout reinforce NVIDIA’s role as the backbone of global AI infrastructure.
Superior Ecosystem
NVIDIA’s edge comes from its full ecosystem, hardware, software and services working together. In Q3, major AI leaders like Anthropic adopted NVIDIA systems for the first time, expanding the reach of CUDA and deepening customer loyalty . With partners such as Accenture and Deloitte deploying its solutions across industries, NVIDIA’s ecosystem advantage continues to widen.
Catalysts
The key events that could drive investment opportunities and shift markets.
AI Demand Surge: The next wave of growth comes from agentic AI and physical AI, where companies build systems that reason, plan and act, all of which rely heavily on NVIDIA’s platform.
Performance Lead: Blackwell’s rollout is accelerating, with GB300 already driving most of Blackwell’s Q3 revenue ramp and outperforming Hopper in real-world speed and efficiency
Supply Tightness Supporting Momentum:
Demand remains well ahead of supply, with cloud providers “sold out” across new and older GPUs, keeping pricing power strong and visibility high into Q4
Expanding TAM: AI adoption is spreading beyond hyperscalers as sovereign buyers, enterprises and model builders scale up compute needs, widening NVIDIA’s addressable market
Capital Returns & Consumer Stickiness: With record cash flow and long customer queues, NVIDIA continues to signal strong buyback capacity alongside deep customer commitments, supporting medium-term confidence.
Key Risks
Key pieces of information about the business risks that you need to know about.
Supply Chain Challenges
Nvidia’s reliance on third-party foundries and semiconductor manufacturers exposes it to global supply chain disruptions. Given the complexity of its chips and the limited number of suppliers, any ongoing or future chip shortages could delay production and impact Nvidia’s ability to meet rising demand, particularly in high-growth areas like AI, data centers, and autonomous vehicles.
Regulatory Scrutiny
As Nvidia continues to expand its influence in AI and acquisitions (like ARM), the company faces increased regulatory scrutiny, particularly concerning anti-trust issues. In addition, US export restrictions to China remain an ongoing headwind, potentially limiting access to a key growth market.
Competitive Pressures and Disruption from New AI Models
While Nvidia is a leader in AI hardware, the rise of competitors like Deepseek, which recently launched a disruptive AI model, could threaten Nvidia’s market share. If Deepseek’s model proves more efficient or cost-effective, it may challenge Nvidia’s dominance in AI, particularly for emerging AI applications. Nvidia will need to continuously innovate to fend off this growing competitive threat.
Follow the Experts
Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.
Expert Insights
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“Frankly, I’ve never seen anything like what’s happening at Nvidia. Never, just never...you see, Nvidia is disrupting everything we know.”
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"The Taiwan semi(conductor) relationship will be preserved, and you should not sell Nvidia on any of this"
Expert Insights
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"the big cloud companies are spending (on AI) very aggressively. As long as this continues we don't see any risk in the short-term for Nvidia"
Expert Insights
article
"The anticipated ramp of Blackwell products and persistent demand for H200 illustrate Nvidia’s robust market position"
Expert Insights
Expert Insights
article
“the Trump administration will have to weigh the obvious benefits of a free market to companies like Nvidia and AMD against those national security interests without looking like it is sacrificing one for the other.”
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“Nvidia is openly predicting there will be billions of humanoid robots in the not too distant future.”
Investor Materials
Access the most recent investor updates published by the company.
Key Resources
NVIDIA Blackwell Architecture
ArticleCatapulting generative AI to trillion-parameter scale.
NVIDIA Announces Financial Results for Second Quarter Fiscal 2026
PDFNVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2025
PDFExternal Insights
A curated collection of third-party content relevant to the company and sector to help inform your investment decision.
Nvidia growth
Nvidia’s Stock Has 70% Potential Upside For 2025
ArticleNvidia beats Q3 revenue by $2B, with 94% YoY growth to $35B. Data center revenue tops $30B. Blackwell’s ramp by mid-2025 could drive 70% stock upside.
Market penetration
The GPU Market Beyond the Hyperscalers (excl. Enterprise)
ArticleFollowing Wednesday’s earnings call, Nvidia CEO Jensen Huang relayed (through Bloomberg) that hyperscalers represent roughly 45% of their data center business.
Team
Meet the experienced professionals leading our organization
Jensen Huang
Colette Kress
Jay Puri
Debora Shoquist
What the Pros Asking
Here are the questions that professional investors are asking before making an investment decision.
How is Nvidia performing compared to its competitors?
Amazon Web Services (AWS) has launched the Trainium2 AI chip and plans for an "Ultracluster" with Anthropic, indicating a move towards in-house AI solutions. Despite this, AWS remains a significant customer of NVIDIA, with projected spending over $20 billion on NVIDIA chips in 2024. NVIDIA faces challenges in meeting the surging demand for its GPUs, leading to opportunities for competitors like AMD and Amazon to fill the gap. NVIDIA acknowledges this competition and views it as beneficial for the industry.
What impact is the roll-out of Blackwell GPU's expected to have on Nvidia's growth?
Blackwell is 25x more efficient than its predecessor, Hopper. Its ramp-up is projected to drive billions in incremental revenue with its high-performance capabilities and integration with NVIDIA's networking solutions positioning it as the backbone of next-generation AI infrastructure. The early demand, outstripping supply, and anticipated mid-70% gross margins at full production highlight Blackwell's strong profitability potential and its pivotal role in consolidating NVIDIA's dominance in the AI and data centre markets.
However, NVIDIA has encountered challenges, including reported overheating issues with the Blackwell GPUs, which have necessitated design modifications and uncharacteristic delays. Despite these setbacks, the overwhelming demand suggests that Blackwell will play a pivotal role in NVIDIA's medium-term growth, contributing to increased revenue and market share in the rapidly expanding AI and high-performance computing industries.
What are the risks associated with DeepSeek?
DeepSeek’s claims of a breakthrough in AI model training, offering significant cost savings, have raised concerns about Nvidia’s future growth. However, skepticism surrounds DeepSeek’s technology, particularly due to the lack of third-party verification, unproven benchmarks, and potential government subsidies that may be lowering its costs. Additionally, there are concerns about data security, especially given DeepSeek’s origins in China, which could lead to regulatory scrutiny or even sanctions from Western governments. Until these risks are better understood, the long-term threat DeepSeek poses to Nvidia remains uncertain.
Why is there concern over AI ROI?
There is skepticism about the return on investment in AI capital expenditures, with concerns that massive investments may not yield proportional returns. However, demand for AI technology from corporate clients remains strong, driving sales and earnings growth for companies like NVIDIA.
How does Nvidia utilise partnerships and M&A to enhance its business operations?
NVIDIA leverages partnerships and mergers and acquisitions (M&A) to enhance its business operations and expand its reach across industries. Collaborations with global consulting firms like Accenture and Deloitte enable NVIDIA to integrate its AI technologies into enterprises worldwide.
Sovereign entities like SoftBank are adopting NVIDIA’s cutting-edge technologies to help build Japan’s most powerful AI supercomputer using NVIDIA’s DGX Blackwells systems.