Nvidia

The company enjoys outstanding pricing power today. Its GPUs are so in demand (particularly for AI training/inference) that Nvidia peg prices at very high levels. The evidence is enormous: Nvidia’s gross margins have jumped to roughly 75–76%, far above conventional semiconductor peers.

We see no signs of margin erosion; in fact, Nvidia guided for continue ~76% GAAP gross margins on strong demand. The business can absorb higher pricing without losing customers because its chips are mission-critical (even a 10x price hike for.com domains wouldn’t deter registrants, by analogy).

Nvidia thus easily sustains high returns and could even raise prices further if needed, indicating near-monopolistic pricing power. The only caveat is supply constraints (TSMC capacity); but this bottleneck currently preserves pricing power rather than forcing cuts.