24 November 2025 Networking can drive further upside driven by TAM expansion: The overall AI total addressable market (TAM) is expanding beyond traditional hyperscalers into emerging hyperscalers, enterprise and sovereign AI, driving the AI networking TAM higher too. Already the market leader in Ethernet switches, Broadcom has also matched digital signal processor (DSP) market leader Marvell's roadmap with its 1.6T solution (see Marvell Technology (MRVL US): Initiate at Hold, 24 November 2025). Therefore, w ...

Group 1 - Nvidia has seen significant stock gains in 2023 and 2024 due to its leadership in the AI accelerator industry, primarily driven by its role in ChatGPT [1] - The company's products now generate nearly all of its revenue, highlighting its dominance in the AI market [1] - Recent developments, including the DeepSeek breakthrough and signs of falling demand, have raised concerns about Nvidia's near-term stock performance [2][3] Group 2 - Nvidia's revenue increased by 114% in the fiscal year, but the sales outlook for Q1 2026 indicates a deceleration to 65% growth, suggesting potential overvaluation with a P/E ratio of 36 and a price-to-book ratio of 33 [5] - Despite challenges, the AI chip market is projected to grow at a CAGR of 29% through 2030, indicating long-term demand for Nvidia's products [6] - Nvidia maintains an 85% market share in advanced AI chips, making it difficult for competitors to challenge its position [7] Group 3 - Competitors must not only match Nvidia's current technology but also prepare for its next-generation chip, Rubin, expected in 2026, which reinforces Nvidia's leading edge [8] - Although revenue growth is expected to slow, net income is likely to continue growing, supported by a forward P/E of 24 [9] - The overall sentiment suggests that Nvidia's stock is more likely a hold than a sell, as long-term growth prospects remain strong despite short-term challenges [10][11]