NVDA
👑 Nvidia currently holds a dominant position in the AI chip market, being the top choice for high-performance needs.
👥 A major emerging risk involves key customers like Google, Amazon, and potentially Meta developing their own custom AI chips, potentially reducing reliance on Nvidia.
📉 While not an immediate threat, this trend could lead to increased competition and pressure on Nvidia’s market share and revenue growth in the longer term.
@bernardodegarcia:
“Between Nvidia, Google, and Meta, which do you think will grow more in the future? And I ask you, how many years is that future?… Nvidia has a lot of potential ahead. Main problem: Google, Amazon, and perhaps also Meta. Just like Apple ended up doing with Intel. Ah, they are going to manufacture their own chips, and they are its main customers. So, I don’t know, Jack. Nvidia perhaps also looks good… I’m concerned about a recent comment of yours about Nvidia. Do you think its growth is ending because Amazon and others will manufacture their own chips? It’s not ending now. And Nvidia, I mean, Nvidia right now is the only player, so to speak, okay? I mean, it’s the top. You want top tier, you go Nvidia. You go to others, it’s okay if you go to others. But the top players will go for the top products. What happens? The top players, the ones that spend the most on Capex, Microsoft, Alphabet, Amazon, and others – Microsoft as far as I know, no, but maybe yes and we don’t know or maybe yes and I don’t know – but Google and Amazon are indeed manufacturing their own chips, and they are doing it through Broadcom. We talked about it… If you take away Nvidia’s main customers, the contraction in revenue will be drastic. I don’t think this will happen overnight or be a single blow, okay? But it’s a possibility that exists. What happens? Then you’ll have Nvidia chips, Google chips, Amazon chips, and God knows whose chips. I think Google and Amazon will manufacture them for themselves and then offer their services, but Nvidia’s chips, ah, will continue to evolve and grow, and there will simply be, probably, more players with a level, depending on what you want the AI for, more acceptable than Nvidia’s. This isn’t ultra-negative for Nvidia, but obviously, from the position of power, almost a monopoly, that Nvidia is in, well, yes, it could affect it.”
Watch the exact part of the video where @bernardodegarcia talks about NVIDIA Corporation here:
Watch the video on YouTube
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