The Impact of Nvidia’s AI Hardware Dominance on Valuations across AIrelated Semiconductor Stocks

Renno Ikezawa

doi:10.46609/IJSSER.2026.v11i06.011

Title: The Impact of Nvidia’s AI Hardware Dominance on Valuations across AIrelated Semiconductor Stocks
Authors: Renno Ikezawa
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 11 Issue: 6 Publication Date: June 2026 DOI: 10.46609/IJSSER.2026.v11i06.011
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Renno Ikezawa Student at Shawnigan Lake School, Shawnigan Lake, British Columbia, Canada
MLA 8 Ikezawa, Renno. "The Impact of Nvidia’s AI Hardware Dominance on Valuations across AIrelated Semiconductor Stocks." Int. j. of Social Science and Economic Research, vol. 11, no. 6, June 2026, pp. 2626-2634, doi.org/10.46609/IJSSER.2026.v11i06.011. Accessed June 2026. APA 6 Ikezawa, R. (2026, June). The Impact of Nvidia’s AI Hardware Dominance on Valuations across AIrelated Semiconductor Stocks. Int. j. of Social Science and Economic Research, 11(6), 2626-2634. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i06.011 Chicago Ikezawa, Renno. "The Impact of Nvidia’s AI Hardware Dominance on Valuations across AIrelated Semiconductor Stocks." Int. j. of Social Science and Economic Research 11, no. 6 (June 2026), 2626-2634. Accessed June, 2026. https://doi.org/10.46609/IJSSER.2026.v11i06.011.
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ABSTRACT: The rapid emergence of artificial intelligence has shown influences in the market involving semiconductor companies as society walks through a new technological era, with Nvidia emerging as the dominant supplier of AI hardware. Between 2023 and 2025, Nvidia’s market capitalization surged past $4.5 trillion while its revenue growth largely outpaced all its competitors. This dominance has raised concerns about valuation volatility not only for Nvidia but for the Ai semiconductor sector of the market. This study investigates how Nvidia’s nearmonopolistic position in the AI sector contributes to inflated valuations across AI-related semiconductor stocks. A quantitative analysis was conducted using recent stock data from January 2023 to December 2025 for five AI-exposed firms (Nvidia, AMD, Broadcom, TSMC, ASML) and a control group of non-AI semiconductor companies. Valuation metrics including price-to-earnings ratios, market capitalization, and revenue figures were analyzed alongside correlation analysis of daily closing prices. The results reveal that AI-exposed semiconductor firms trade at significantly higher valuation multiples compared to non-AI-exposed firms, with a mean P/E ratio of 55.80 compared to 43.54. Correlation coefficients between Nvidia and its AI semiconductor firms ranged from 0.5 to 0.69, indicating a co-movement of pricing within the industry. These findings provide empirical evidence that Nvidia acts as a central valuation anchor for the AI semiconductor sector, suggesting that AI-related firms’ valuations are inflated through exposure to the trend rather than independent performance. This study contributes to the literature on market behavior regarding AI exposure and highlights the existing systematic risks in AI focused technology markets.

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