Commonly, public misconceptions mislead the market to poorly represent a company's true worth. The saying says "if it sounds too good to be true, it's most likely not true" rings in my ear when evaluating the future of NVIDIA. While its monumental past illustrates a historic run that may never be recreated, the company stands in a position to continue historic growth; although this growth may not meet standards set in the past 5 years, the company will still maintain a chokehold on the high tech ai market for these 3 reasons:

High switching costs: companies like google, apple, microsoft, meta can't afford to compete with lower tech chips and software... NVIDIA sizably leads the market.
High revenue and gross margins (insane profits): NVIDIA has profited 72 billion, some publicly traded companies will never reach 72 billion in revenue. And this number is only expected to grow as AI will continue to grow, innovating under the fingertips of NVIDIA.
Most stockholders don't understand how NVIDIA makes its money: not only is NVIDIA an AI chip company; NVIDIA sells their top tier software with their hardware called CUDA. CUDA is the software all companies are turning to due to its advanced integration with AI and its end-to-end software stack. This software is sold on a subscription basis, generating high earnings even after the sale of their chips.

Thus, NVIDIA has positioned themselves in a way to dominate the future of AI, and with their high earnings, they will be able to continue to invest a high amount of their funds into innovation to maintain their lead over the global AI market.

Disclaimer

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