Everything on Industry Margins

NVIDIA’s operating margin expansion to 60% highlights the extreme profitability of the current AI hardware cycle. This margin profile is unsustainable in the long term without significant competitive disruption or demand saturation.

Impact: High margins attract new entrants and internal competition from hyperscalers developing their own chips, which could erode NVIDIA’s pricing power in future cycles.

— from Big Tech CapEx Surge and AI Market Implications · Motley Fool Money· Feb 06, 2026