Nvidia, ON Semi Lead AI Chip Rally to New Highs - Gotrade

On May 28, 2026, the semiconductor industry witnessed a renewed rally led by NVIDIA and ON Semiconductor, driving AI chip stocks to new highs. NVIDIA reported a record-breaking Q1 2027 revenue of $81.... Read original →

NVIDIA’s Vera Rubin platform—cutting inference costs by 90% with 75% fewer GPUs—will squeeze mid-tier AI chipmakers, forcing AMD and Intel to accelerate chiplet and in-memory computing architectures. Upstream, EUV and 3nm capacity will skew further toward high-end AI, raising U.S. export control risks for TSMC’s Taiwan, China fabs. ON Semiconductor, leveraging silicon carbide and AI power management, is pivoting from automotive Tier1 to data center enabler—but its Mexico/Southeast Asia footprint faces rising USMCA compliance costs. Broadcom may counter NVIDIA’s stack dominance by deepening VMware-AI software integration. Over the next 18 months, AI chip margins will bifurcate: leaders scale to crush BOM costs, while laggards retreat to edge inference or vertical-specific models. Notably, NVIDIA’s P/E of 33—well below its decade average—prices in client-driven ASIC threats from Microsoft and Anthropic, which will anchor its next valuation phase.