Nvidia at 16x Earnings: Bargain or Value Trap? (Pt.2)

Is Nvidia at 16x earnings a bargain or a value trap? We look at how Nvidia’s GPU is turning into a TPU, why tile languages and AI-written code weaken CUDA, and why Broadcom is better placed to win as AI labs build their own chips.

AI spending keeps growing, but the winners are changing. Our 4Q26 rebalance favors Broadcom over NVIDIA and backs suppliers enabling logic folding and optical integration. We also explore Tesla’s physical AI opportunity and the risks to TSMC’s long-term dominance.

Cut off from EUV, Huawei is scaling a different way: folding two chips face to face so signals travel down rather than across. Part 2 explains why that raises clock speed without shrinking transistors, how the design repairs its own defects, and where the real wall lies.