TLDR:
- Nvidia has dominated the artificial intelligence chip market with an 80% market share.
- Apple has been sourcing chips from Alphabet for its AI-powered iPhones.
Nvidia has seen remarkable growth in the AI chip market, but faces increasing competition from other tech giants. Apple, for example, has turned to Alphabet for AI chips to power its new iPhone features. Alphabet’s resources and investments in AI pose a potential threat to Nvidia’s market dominance. Additionally, other competitors such as Meta Platforms, Amazon, and AMD are also developing AI chips that could challenge Nvidia in the future.
Despite Nvidia’s current strong position in the market, maintaining such a large market share can be challenging, especially with competitors entering the field. Nvidia’s impressive revenue growth, with growth rates exceeding 200% in recent quarters, is likely to slow down as competition intensifies. Investors should be prepared for potential challenges ahead, as Nvidia’s growth rate and margins may decrease in the face of increased competition. However, Nvidia remains a top company to invest in for exposure to the AI market, and while there may be short-term struggles, it could still be a good buy for long-term investors.