The article asks whether Nvidia could reach a $10 trillion market value and urges caution, because its largest customers, Microsoft, Amazon, Alphabet and Meta, are developing their own AI chips that could erode Nvidia's pricing power over time. These four companies are projecting $760 billion in capex this year. Nvidia's fiscal Q2 2027 revenue rose 106% year over year to $96.2 billion, with data center revenue up 117% to $89 billion and a 75% gross margin. The author estimates that a $10 trillion valuation at a 25x P/E would require about $400 billion in net profit, versus $120 billion in fiscal 2026. Still, the article notes that Nvidia's CUDA ecosystem keeps its products hard to replace, and investors should watch whether custom chips capture a meaningful share of workloads.
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NvidiavaluationsemiconductorsAI investment
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Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/19/2026 | 217.09 |
| Change that session | +1.38% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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