NVDA has about 95% of the market for specialized AI chips and has gross margins of 76%, similar to a software company. NVDA believes the replacement market for GPUs for CPUs is a $1 trillion revenue opportunity. The unknowns of the market are the length of time to replace these chips, the market acceptance of AI, and the budgets to build out these massive data centers. We think the big long-term winners in providing the service are going to be MSFT, GOOG, AMZN, and META by expanding the current size of the information market.

‍