Nvidia Is Becoming More Than a Chipmaker. Can it Sustain Its Exceptional Margins?

NVIDIA Corp.'s (NASDAQ:NVDA) next test may have less to do with inventing a faster chip than with persuading customers to buy an entire computing system around it. The company is increasingly presenting processors, networking, CPUs and supporting software as pieces of the same AI infrastructure. That broadening of its offering could strengthen its position in data-center budgets. It also raises a less comfortable question of how dependent its extraordinary success has become on a relatively small group of customers. Read also: 12 Best NASDAQ Growth Stocks to Buy Over the Next 5 YearsAnalyst Explains How NVIDIA (NVDA) Can Reach $8 Trillion Market Cap Bull Case Nvidia's latest product announcements depict this distinction.