The AI Threat That Nvidia Supporters Are Overlooking
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2025
0mins
Should l Buy AAPL?
Source: Benzinga
Nvidia's Margin Concerns: The main issue for Nvidia isn't competition from other GPUs but the potential revolt of hyperscalers against its high margins, as they seek to reduce costs by developing their own AI hardware like Google's TPUs.
Shift to In-House Solutions: Companies like Google, Amazon, Meta, and Microsoft are increasingly investing in custom silicon to run AI workloads, aiming to lower their dependency on Nvidia and its pricing.
Impact on Pricing Power: As hyperscalers create viable alternatives to Nvidia's GPUs, the company's pricing power may diminish, leading to a potential shift in how much they are willing to pay for Nvidia's technology.
Investor Implications: While AI demand remains strong, Nvidia's long-term profitability could be at risk if hyperscalers gain leverage and challenge the sustainability of its high margins.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Market Potential: By allowing users to choose familiar AI assistants, Apple could stimulate sales growth in its stagnant iPhone business, increasing user reliance on its hardware, although this contrasts with its earlier closed ecosystem approach.
- Revenue Opportunities: Apple will collect a 30% commission from third-party AI applications, creating a new revenue stream for the company and potentially enhancing the overall appeal of the App Store, further solidifying its ecosystem.
- Long-Term Growth Outlook: While Siri's subpar performance may not impact Apple's market position in the short term, integrating third-party technology could help Apple gradually increase its market share against Android, maintaining its loyal customer base.
See More
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- Revenue Potential: Allowing users to choose third-party AI assistants from the App Store means Apple will continue to collect a 30% commission, which not only generates additional revenue but may also attract more developers to its ecosystem.
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See More
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See More
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See More
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- ETF Investment Strategy: Despite the Vanguard Information Technology ETF's 16.4% drop from its 2025 peak, its share price has decreased from $800 to $665, presenting an opportunity for long-term investors to buy at a discount.
- Diversified Risk Management: This ETF holds 318 stocks, with the top three holdings accounting for 44%, while the remaining assets are spread across various tech sectors, reducing single-stock risk and enhancing resilience against downturns.
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See More
