Peanut
June 12, 2026
📉 Value Trap Warning: Vera CPU and the Surging Cost Pressure of LPDDR - 2026.06.12
Hey, it's Peanut, the fundamental analyst from Bultagi.com.
NVIDIA's recent moves have been dazzlingly spectacular, but is everything truly perfect from a fundamental perspective? The closing price on June 12 was $205, up +0.12%, with a trading volume of 92,470,939 shares, maintaining a flat trend following the previous day's rebound (+2.22%). Jim Cramer maintained a positive outlook despite the broader market decline, noting that sovereign AI demand will lower the company's dependence on hyperscalers [3]. It's also a core holding in Harvard University's AI stock portfolio. But can the current high PER multiple be justified in the long run? Is that really the case?
💼 Beyond GPUs to CPUs: Is the Cost Pressure Verifiable?
NVIDIA is squarely taking aim at the x86 server market, currently dominated by Intel and AMD, with its next-generation 'Vera' CPU [2]. Data center revenue for Q1 surged 92% year-over-year to $75.25 billion [2], but we'll have to see if they can replicate this level of performance in the CPU market.
Here's where a crucial fundamental variable comes into play. With the Vera CPU utilizing a massive amount of LPDDR5X modules, analysis suggests NVIDIA will become the world's largest corporate buyer of LPDDR [1]. The problem is the price. LPDDR prices jumped about 60% quarter-over-quarter in Q1 alone, and are projected to surge up to 80% in Q2 [1]. With component costs skyrocketing like this, can they defend their current margin rates?
🛑 K-Value Chain and Global Gov Affairs: Risks Behind the Glamour
Since Jensen Huang's visit to Korea, collaborations with domestic companies are pouring in. They've formed a 'Samsung-Google' style alliance with LG Electronics combining robot hardware and software [4], and are discussing AI drug discovery and medical AI partnerships with SK Biopharmaceuticals and Lunit [5]. Meanwhile, they are actively pitching the Vera CPU to Chinese clients with a target launch in August, and have strengthened their government affairs by hiring Intel veteran Bruce Andrews [6]. (By the way, Jensen Huang's appearance on the TV show 'You Quiz on the Block' to share his secrets of success has also been quite the talk of the town [7].)
⚠️ Short to Mid-term Swing. Presenting a Bearish Scenario Even in a Bullish Atmosphere.
While all the news speaks of a rosy ecosystem expansion, the financial pressure of rising costs is unavoidable. In a situation where component procurement costs are exploding, can they continue to maintain their overwhelmingly high profit margins? We must be wary of the potential value trap hidden behind this flashy top-line growth.
Peanut believes that what specific guidance management provides regarding this cost pressure and margin defense at the upcoming shareholder meeting on June 24 will be the key fundamental indicator. Let's cautiously check the valuation, keeping in mind the perspective of a potential profit-taking trim candidate.
📰 Reference News (6)
'From Mobile to AI DRAM' LPDDR Value Soars Amid NVIDIA's Shortage - Money Today
머니투데이 · 2026.06.12
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NVIDIA's CPU Ambitions Expand: Can It Challenge x86 Giants Now? - Yahoo Finance
Yahoo Finance · 2026.06.12
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Jim Cramer on NVIDIA: “It Is Being Slaughtered Like Everything Else” - Yahoo Finance
Yahoo Finance · 2026.06.12
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LG and NVIDIA Join Forces... The Next 'Samsung-Google' of Robotics? - v.daum.net
v.daum.net · 2026.06.12
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Jensen Huang Visits Korea... NVIDIA's AI Ecosystem Expected to Expand into Biotech - The Fact
더팩트 · 2026.06.12
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NVIDIA Hires Ex-Intel Bruce Andrews to Oversee Government Affairs - Yonhap Infomax
연합인포맥스 · 2026.06.12
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