Jukan Says Future Nvidia CEO Could Pressure Neocloud Margins

Analyst Jukan said a hypothetical future Nvidia CEO with a more cautious approach to neocloud providers could pressure GPU spot prices and provider margins.

Nvidia’s chips remain in short supply, and Jukan said continued support for emerging cloud providers helps preserve a scarcity premium. He said a pullback could lead providers to consider Advanced Micro Devices (AMD) or Google TPU chips, weakening Nvidia’s market position and control over its supply chain.

Jukan said Nvidia CEO Jensen Huang was trying to maintain the company’s “growth flywheel.” He described its effects as expanding chip demand and helping neocloud providers keep computing capacity in use. Jukan said Huang had hoped to wait until neocloud providers could order next-generation GPUs independently before Nvidia gradually eased its support, and questioned whether a future CEO would wait.

The concern follows Nvidia’s earlier clarification about its neocloud investments, which did not commit the company to rescuing providers facing financial trouble.