Nvidia: The Vera Edge And The Poison Pill Of Circular Financing

Nvidia Corporation is rated Strong Buy, driven by its transition to a rack-scale AI utility model and aggressive CPU disintermediation via Vera. NVDA’s Vera CPU and Rubin architecture enable 35X lower compute costs, accelerating agentic AI adoption and expanding total addressable market. Key risks include gross margin compression from HBM memory pricing and systemic credit contagion from circular-financed NeoClouds like Nebius. At ~15.85x FY28 earnings, NVDA’s valuation is compressed, underpricing its durable rack-scale advantage and capital return potential.

My previous coverage of Nvidia Corporation (NVDA) stock rated it a Strong Buy, based on the reasoning that Nvidia is the foundational OS for agentic AI. In that thesis, the upside argument is based on two main catalysts.