NVIDIA Corp. (NASDAQ:NVDA) continues to draw bullish views from industry analysts, who point to its margin advantage, expanding AI opportunity, and powerful software ecosystem as key factors supporting its long-term growth prospects.

Margin Advantage Remains Difficult to Challenge

Dave Nicholson, Chief Research Officer at The Futurum Group, told CNBC on Monday that NVIDIA has continued to strengthen its position in the data center market and could sustain profit margins roughly 20% higher than competitors' through 2030.

He said even his firm's most conservative projections indicate NVIDIA will preserve a meaningful profitability advantage, leading him to characterize the company's position as largely unmatched in the near term. "I think they are unassailable in the short term," he said.

Nicholson also argued that NVIDIA's valuation remains attractive because the AI-driven growth cycle is still in its early stages.

AI Adoption Is Only Beginning

Nicholson said it is too early to place a ceiling on NVIDIA's valuation because the company stands to benefit from the expanding use of AI at scale.

He noted that the industry has recorded only a few months of positive return on investment from large AI deployments, suggesting the market remains in the early stages of adoption.

While acknowledging that the outlook may appear ambitious, he maintained that the broader AI opportunity is only starting to unfold.

Taiwan Presence Could Support Future Profitability

Nicholson also said NVIDIA's growing footprint in Taiwan could improve operational efficiency by bringing the company closer to critical semiconductor supply-chain partners.

He noted that proximity within manufacturing ecosystems can streamline operations and support margin retention over time.

However, he added that geopolitical tensions between mainland China and Taiwan remain a factor investors should monitor.

CUDA Gives NVIDIA A Lasting Competitive Edge

Bob O'Donnell, President and Chief Analyst at TECHnalysis Research, told CNBC on Monday that NVIDIA's CUDA software platform remains one of the company's strongest competitive advantages.

He argued that NVIDIA's extensive software ecosystem continues to attract customers even as rival hardware offerings improve.

According to O'Donnell, NVIDIA has spent years building CUDA tools that integrate closely with its chips, allowing developers and enterprises to deploy advanced AI applications more effectively.

Software Strength Reinforces Market Leadership

O'Donnell said NVIDIA's dominance increasingly depends on the combination of software and hardware rather than silicon alone.

While he acknowledged that competitors such as Advanced Micro Devices, Inc. (AMD) have narrowed performance gaps in some areas, he emphasized that CUDA remains a major differentiator.

He believes the software ecosystem helps NVIDIA maintain its leadership position despite growing competition.

NVIDIA AI Returns Are Emerging Gradually

O'Donnell said businesses are beginning to realize benefits from AI investments through productivity gains and increased software development, though the industry remains in the early stages of adoption. He noted that many organizations are still learning how to measure returns and train employees to use AI effectively.

In his view, these efforts are laying the foundation for broader economic benefits over time.

Expanding AI Market Creates Room for Multiple Players

O'Donnell acknowledged that AMD, hyperscalers, and custom-chip developers continue to invest heavily in AI infrastructure.

However, he argued that the AI market is large enough to support multiple participants because different workloads require different types of processors.

He expects future AI systems to distribute tasks across PCs, cloud platforms, and specialized chips, while NVIDIA remains a central beneficiary because of its tightly integrated hardware and software strategy.

NVIDIA Price Action

NVDA Price Action: NVIDIA shares were up 2.21% at $215.80 during premarket trading on Monday, according to market data.