Netherlands International Group: NVIDIA's Profit Margin Faces Threat from Customer's In-house Chip
BlockBeats News, July 7th, Jan Frederik Slijkerman of Holland International Group wrote in a report that as tech giants develop their own chips, Nvidia's ability to maintain its profit margin faces uncertainty.
He pointed out that major customers such as Microsoft, Alphabet, and Amazon are developing their custom chips to help control AI infrastructure costs (capital expenditure efficiency).
He stated that as a result, Nvidia's pricing power may face more intense competition than in recent years, making it more challenging for the company to sustain its current high profit margin in the long term, despite the company's expansion into new business lines.
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