From Nasdaq: 2024-08-03 06:15:00

Nvidia’s dominance in the AI accelerator market is at risk as Apple chooses to avoid their GPUs for its Apple Intelligence platform, opting instead for Google’s custom AI chips. This jeopardizes Nvidia’s $3 trillion valuation and future profitability as competition intensifies.

Apple is set to release AI-powered features, including writing tools and Siri improvements, using custom AI chips. By sidestepping Nvidia’s GPUs for Google’s TPUs, Apple challenges Nvidia’s stronghold on the AI training market, signaling a potential shift in the industry landscape.

With Apple’s move away from Nvidia’s GPUs, the tech giant faces a significant threat to its profits and market share in the AI chip sector. Despite strong financial results, Nvidia’s margins may be impacted as competition increases, putting pressure on its growth and industry position. Investors should tread carefully with Nvidia stock amidst these developments.



Read more at Nasdaq: Apple Just Exposed a Massive Risk for Nvidia Stock