From Nasdaq:

Nvidia (NASDAQ: NVDA) dominates the AI graphics card market with a 92% share. Despite facing potential threats from tech giants, the company’s growth soared 230% this year. Custom AI chips from Alphabet, Meta Platforms, Microsoft, and Amazon could reduce reliance on Nvidia’s GPUs due to issues with supply and cost. Nvidia might be entering the custom AI chip market to stay competitive.

Other leading manufacturers of custom AI chips, Broadcom (NASDAQ: AVGO) and Marvell Technology (NASDAQ: MRVL), have seen a sharp increase in AI-related orders. Custom AI chip market worth an estimated $30 billion last year. AI chip market could reach $182 billion by 2027 and custom chips may account for 30%, signifying a $55 billion revenue opportunity. A former Marvell executive is heading Nvidia’s custom chip division. Nvidia may be in talks with tech giants to make custom chips for them.

If the reports about Nvidia entering the custom AI chip space are true, investors will have another reason to invest in this fast-growing AI stock. Trading at an attractive 35 times forward earnings, a discount to its five-year average. However, The Motley Fool Stock Advisor analyst team did not identify Nvidia as one of the 10 best stocks for investors to buy now. The Motley Fool recommends Alphabet, Amazon, Meta Platforms, Microsoft, Broadcom, and Marvell Technology and has a disclosure policy.



Read more: Nvidia Could Be About to Counter a Big Artificial Intelligence (AI) Threat With This Move