NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. NVIDIA Corporation (NASDAQ:NVDA) announced a collaboration with Novo Nordisk to ramp up the drug discovery efforts via innovative AI use cases. The work supports Novo Nordisk’s agreement with DCAI to utilise the Gefion sovereign AI supercomputer. The companies are focusing on creating customized AI models and agents that Novo Nordisk can utilise for early research and clinical development, as well as to apply advanced simulation and physical AI technologies. DCAI’s Gefion supercomputer, which is powered by NVIDIA DGX SuperPOD™, offers Novo Nordisk an AI factory for running drug discovery and agentic AI workloads.
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
Elsewhere, Morningstar believes that NVIDIA Corporation (NASDAQ:NVDA)’s DC business has achieved exponential growth, increasing from $3 billion in fiscal 2020 to $115 billion in fiscal 2025. The firm opines that DC revenue remains supply-constrained, with near-term revenue expected to rise as more supply comes online. The firm assigned NVIDIA Corporation (NASDAQ:NVDA) a wide economic moat, stemming from the intangible assets related to its graphics processing units and switching costs associated with its proprietary software, like its CUDA platform for AI tools, which tends to enable developers to utilise Nvidia’s GPUs to build AI models.
Longriver Investment Partners released its Q2 2025 investor letter. Here is what the fund said:
“This shift in capex priorities has reopened the debate over compute architectures. Custom silicon promises a way out of NVIDIA Corporation’s (NASDAQ:NVDA) pricing power, especially for inference. But the path is not straightforward.
For hyperscalers, the logic of custom silicon is clear. Nvidia’s pricing power is real and inference costs are spiralling. ASICs offer lower cost, better integration, power efficiency, and more control. But while this sounds ideal on paper, it is hard to deliver in the real world.
Custom chips work best when workloads are stable and scale is extreme. AI is neither. Models have evolved quickly, shifting, for example, from transformers to diffusion, and from instruction-tuned to multimodal. Fixed-function chips, by design, are not built to adapt. If the model shifts, their value evaporates. As one expert put it, “If you spend all this money building something and then you find out the workload changes underneath you, you’re basically stuck…” (Click here to read the full text)
NVIDIA Corporation (NASDAQ:NVDA) is engaged in designing and selling semiconductor chips, mainly GPUs, which are important hardware components utilised in computing.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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