Nvidia: The Real Competitive Advantage Isn't About The Chip

Nvidia Corporation can only sustain outperformance if AI remains supply constrained and TSMC capacity is a key bottleneck. NVDA's touted advantages—chip generality and performance—are less defensible as hyperscalers increasingly develop competitive in-house alternatives. Gross margin comparisons and hyperscaler chip investments suggest NVDA's performance edge may be overstated, especially as customers seek alternatives.