NVIDIA (NVDA) Investment Analysis: TPU Competition & Valuation Context

This analysis is based on a Reddit discussion (2025-11-28) debating NVIDIA’s (NVDA) investment case amid Google TPU competition [Event Content]. NVDA closed at $176.51 on 2025-11-29, down 2.08%—underperforming the tech sector (up 0.53%) [0]. Key competitive data shows NVDA’s Blackwell/B200 chips deliver ~5x tokens-per-dollar vs TPU v6e [1], supporting pro arguments about hardware superiority.

1. Cost Advantage Mitigates Competition
   : NVDA’s ~5x cost edge over TPUs reduces near-term margin pressure, though long-term competition remains a risk.
2. Valuation vs Growth
   : The PE ratio (~44) is below Reddit’s cited ~50 but still above market averages, highlighting valuation risk if AI growth slows [0,6].
3. Supply Chain Double-Edged Sword
   : Blackwell chips are sold out into 2025—indicating high demand but potential market share loss if supply gaps persist [3].

:

• Valuation: Elevated PE ratio may lead to correction if growth slows [0,6].
• Competition: Long-term TPU improvements or AMD’s expansion could pressure margins [Event Content].
• Supply Chain: Inability to meet demand may allow competitors to gain share [3].

:

• Cost Leadership: ~5x tokens-per-dollar advantage over TPUs strengthens market position [1].
• Ecosystem Lead: CUDA platform stickiness limits short-term TPU adoption [Event Content].

Metric	Value	Source
Current Price	$176.51 (-2.08%)	[0]
PE Ratio	43.69	[0]
Market Cap	$4.30T	[0]
Cost Advantage vs TPU v6e	~5x	[1]

: Missing recent revenue/EPS growth data, margin trends, and TPU market share metrics to fully assess investment case.