Key Takeaways

• General Compute CTO Jason Goodison says NVIDIA’s chips struggle with decode on very large AI models, and that fast tokens can be sold for 3 to 5x the price.
• That puts NVIDIA’s pricing power at risk as companies built for speed, like Cerebras, go after the premium, though NVIDIA loses no sales while supply stays tight.
• NVIDIA already expects its gross margin to fall to 71% to 72% in the January 2027 quarter, and it paid $13 billion in a Groq deal that adds an inference accelerator to its next platform.
• At 17x forward earnings, its lowest in five years, the stock already prices in more than this risk, and the Nov. 17 report’s margin guidance is the next thing to watch.

NVIDIA (NVDA) has a weak spot,…