NVIDIA’s NVLink Fusion: The Unstoppable Force in AI Infrastructure Dominance

Clyde MorganMonday, May 19, 2025 5:29 am ET
59min read

The AI infrastructure arms race is no longer a contest—it’s a coronation. NVIDIA’s NVLink Fusion ecosystem has solidified its position as the de facto standard for training trillion-parameter models, locking in partners like MediaTek, Qualcomm, and Fujitsu into a proprietary hardware-software stack that’s redefining the future of computing. With 114% revenue growth, a Piotroski Financial Strength Score of 9 (the highest possible), and Mizuho’s $168 price target upgrade, NVIDIA (NASDAQ: NVDA) isn’t just leading—it’s monopolizing the $100B AI factory market. This is a once-in-a-decade investment opportunity to own the company that’s engineering the next generation of intelligence.

The Ecosystem Lock-In Strategy: Why Partners Can’t Walk Away

NVLink Fusion isn’t just a high-speed interconnect—it’s a strategic stranglehold on the AI supply chain. Here’s how NVIDIA ensures partners are locked in for decades:

  1. Proprietary Performance Supremacy:
    NVLink Fusion delivers 1.8 TB/s bandwidth per GPU14x faster than PCIe Gen5—creating a dependency on NVIDIA’s hardware for large-scale AI workloads. Competitors like AMD and Intel’s UALink consortium can’t match this, offering only 200 Gbps. This performance chasm ensures that partners like MediaTek (designing custom 2nm/3nm AI ASICs) and Qualcomm (building Nuvia-based server CPUs) must integrate NVIDIA’s silicon to achieve agentic AI at scale.

  2. Closed-Loop Software Stack:
    NVIDIA’s Mission Control orchestration software automates data center management, workload validation, and resource optimization—only optimized for NVIDIA’s ecosystem. Partners like Fujitsu’s 144-core Monaka CPU must use Mission Control to achieve 2x energy efficiency gains, creating a seamless but irreplaceable workflow.

  3. Hardware-Centric Monopolization:
    The NVLink Fusion program requires partners to adopt NVIDIA’s rack-scale systems (e.g., GB300 Grace-Blackwell racks) and networking tools (ConnectX-8 SuperNICs). This “all-in-one AI factory” model means Fujitsu, MediaTek, and others can’t easily pivot to open standards without sacrificing performance or compatibility.

Scalable AI Demand: The Trillion-Parameter Tipping Point

The world’s largest AI models now require millions of GPUs and petabytes of data. NVIDIA’s ecosystem is the only scalable solution:
- Saudi Arabia’s HUMAIN AI: Ordered 18,000 Grace-Blackwell chips in Q2 2025, with “hundreds of thousands” more planned. This is just the beginning—NVIDIA’s AI factories are being deployed by Foxconn, Supermicro, and telecom giants to power autonomous systems, drug discovery, and quantum computing.
- Trillion-Parameter Models: NVIDIA’s chiplet architecture (Grace CPU + Blackwell GPU) enables distributed training across 1 million+ GPUs, a feat no competitor can match.


The stock has outperformed the S&P 500 by 247% since 2020, reflecting investor confidence in its AI dominance.

Financial Fortitude: A Piotroski Score 9 Machine

NVIDIA isn’t just betting on AI—it’s profitably executing. Key metrics:
- 114% YoY Revenue Growth (Q2 2025): AI infrastructure sales surged as enterprises rearchitect data centers for agentic AI.
- $1.2B Free Cash Flow (Q1 2025): NVIDIA’s balance sheet is bulletproof, with $11B in cash and no debt.
- Piotroski Score 9: A perfect score in working capital management, leverage reduction, and operating efficiency.

Analysts are taking notice: Mizuho upgraded NVIDIA to “Buy” with a $168 PT (28% upside from current levels), citing “irreplaceable AI infrastructure leadership.”

Why Act Now? The Inevitable AI Infrastructure Reboot

Enterprises are in a race to retool data centers for AI. The cost of waiting is catastrophic:
- Competitor Fragmentation: AMD’s MI300 and Intel’s Ponte Vecchio lack NVLink’s bandwidth and ecosystem support, leaving them as niche players.
- Geopolitical AI Sovereignty: Nations like Saudi Arabia, Japan (via Fujitsu), and Taiwan (via MediaTek) are tying their AI futures to NVIDIA’s stack.

NVIDIA’s moat is unassailable: its proprietary interconnect, full-stack software, and partner lock-in create a $50B annual opportunity in AI factories by 2027.

Final Call: Own the AI Infrastructure Monopoly

NVIDIA isn’t just a GPU company—it’s the gatekeeper of the AI era. With NVLink Fusion, it’s commoditizing competitors and monopolizing the world’s most valuable resource: computational intelligence.


The stock is priced for growth but undervalued against its AI monopoly. With $168 PT on the horizon, this is your last chance to buy NVIDIA before it becomes the next FAANG.

Action Now: Add NVIDIA to your portfolio. The AI infrastructure revolution is here—and NVIDIA is writing the rules.

JR Research does not hold positions in NVIDIA and is not a financial advisor. Always conduct your own research.