NVDA growth deceleration causes near-term underperformance; eventual price rise expected if trend holds.

By comparison, an NVIDIA GPU server costs millions of dollars, like seven, $8 million for an NVIDIA Vera Rubin server rack.

Companies like Meta and the other big tech companies are going to want the latest and greatest generation of GPUs from NVIDIA for this type of work.

Nvidia, the primary GPU and other custom accelerator, provider there on the left. They also have gotten into the CPU game with the Vera CPU. And entire dedicated racks of CPUs that they are beginning to launch right now as well.

Let's start from the left, Nvidia. I'm gonna click on most recent quarter. For Nvidia, revenue growth rate as of the last quarter was still triple digits, 106% year-over-year growth.

That is still going to remain quite high, but we should expect it to slow down in calendar year 2027. The outlook is 70% growth. That is incredible, but it is still a slowdown, and so that is part of what the market is pricing in with Nvidia stock.

It's one of the reasons why it has been a market outperform overall, but semiconductor industry specific underperform, relative to a lot of peers in the last year. With the valuation getting compressed, we think it's only a matter of time before Nvidia eventually has its own run higher, assuming this trend continues.

But it is largest company in the world by market cap, at least as of right now, five and a half trillion dollars. We should just simply expect the stock price to grow at a slower rate.