The author argues NVIDIA's high hardware margins are vulnerable because hyperscalers are building cheaper custom silicon.
NVDA — AVOID The author contends NVIDIA's H100 pricing at $21,163 per normalized compute unit reflects a scarcity premium, while Google and Amazon's custom silicon costs 60-70% less. Hyperscalers are not merely customers but are building a cheaper exit strategy, which could erode NVIDIA's 74% gross margin and pricing power. No specific time horizon is given.
NVIDIA's 74 percent gross margin is incredible right now, but this data shows a vulnerability. The hyperscalers are not just customers. They are actively building a cheaper exit strategy.
This Reddit post, published February 19, 2026, features u/reap3r28 discussing NVDA. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/reap3r28 · Tickers: NVDA