Nvidia's Profit Margins Are Safe for Now, Luria Says
Speakers
Gil Luria
— Technology Strategist at D.A. Davidson
Summary
Gil Luria of DA Davidson discusses Nvidia's safe profit margins through 2030 due to hyperscalers' limited chip alternatives. He highlights valuation disparities in semis, favoring Nvidia and Micron over higher-priced peers. He also notes capital demands from hyperscalers and IPOs could create volatility.
- Nvidia's gross margins remain safe because hyperscalers have few alternatives to its chips.
- Semiconductor cycle duration is uncertain; could last through 2028-2030 or end sooner.
- Nvidia and Micron trade as if peak is next year, while Intel, AMD, Broadcom trade as if peak is 2030.
- Luria prefers Nvidia (22x) and Micron (10x) due to lower valuations and margin safety.
- Hyperscalers like Google are raising large capital, increasing market supply and volatility.
- AI product run rates show real economic value, supporting continued CapEx spending.
Trade Ideas
Safe margins and reasonable valuation.
Nvidia's profit margins are safe through 2030 because hyperscalers have few alternatives, and its valuation at 22x is reasonable compared to peers, making it a safer bet in the semiconductor cycle regardless of timing of peak.
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This Bloomberg Markets video, published June 05, 2026, features Gil Luria discussing NVDA, MU. 2 trade ideas extracted by AI with direction and confidence scoring.