From Nasdaq:

Nvidia’s stock soared 1,420% over the past five years, largely driven by the expansion of the AI market. The company generated 80% of its revenue from data center chips in its latest quarter. Chipmakers Intel, AMD, and tech giants are challenging Nvidia’s market dominance, raising potential threats to its growth.

Intel has expanded into the data center market with its own line of Xe GPUs, targeting Nvidia’s data center GPUs. While its chips haven’t gained much momentum yet, Intel’s ability to bundle its GPUs with its Xeon CPUs could harm Nvidia in the long term. Additionally, Intel outsources the production of its GPUs to TSMC, which also manufactures Nvidia’s high-end GPUs.

AMD is challenging Nvidia’s market dominance with its new Instinct data center chips for AI tasks. The latest benchmarks show that AMD’s MI300X beats Nvidia’s H100, raising concerns for Nvidia. Similarly, the cost-conscious customer list for AMD’s AI chips could grow longer, posing a threat to Nvidia.

Nvidia’s dominance of the data center GPU market is driving its top customers to develop their own AI accelerator chips. Google and Meta, in particular, have shown interest in developing their own chips that outperform Nvidia’s GPUs. If tech giants continue to develop their own chips, Nvidia’s biggest growth engine could sputter out.

Nvidia’s growth could be threated by the emergence of new challengers in the chip market. Investors should consider potential risks as Intel, AMD, and first-party chips gradually evolve into major threats to Nvidia’s market dominance. It would be unwise to assume Nvidia is an invincible leader in the AI market.



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