From Nasdaq: 2024-05-13 10:00:00

Nvidia stock has surged 81.5% in 2024 and 531% in the last three years, driven by high demand for AI-enabling GPUs. Concerns arise about large tech companies developing custom AI chips, potentially impacting Nvidia’s market share. Nvidia is reportedly forming a custom chip business unit, set to enter the $10 billion custom chip market. Other tech giants, like Alphabet, Amazon, and Microsoft, have already developed custom AI chips. Broadcom dominates the custom chip market, with an estimated 2025 value of $25 billion. Nvidia’s annual revenue run rate is around $96 million, highlighting the potential of the custom chip market. Despite concerns, Nvidia’s expertise makes it likely to succeed in the custom chip market. Investors looking to invest $1,000 should consider other stocks besides Nvidia, as identified by The Motley Fool Stock Advisor. The 10 best stocks identified could provide significant returns in the future.



Read more at Nasdaq: Nvidia Seems Poised to Enter the Multibillion-Dollar Custom Artificial Intelligence (AI) Chip Market