Nvidia's stock surges 2800% in five years as new GPUs launch and competition rises

Nvidia's stock has surged nearly 2,800% in the past five years, driven by strong demand for its H100 graphics processing unit. The company is set to launch its new Blackwell GPUs later this year, which are expected to boost sales further. However, increased capital spending from major tech companies may not all benefit Nvidia, as these firms are developing their own custom chips. This shift could reduce Nvidia's pricing power and impact its revenue growth and profit margins. While Nvidia is likely to see continued gains in the short term, analysts suggest that its stock may not replicate past performance over the next five years. Increased competition could lead to a normalization of Nvidia's valuation, potentially resulting in underperformance compared to its peers.