Nvidia May Have Just Eliminated Its Biggest Risk
Some investors have worried about increasing competition.
Overview
Nvidia (NASDAQ:NVDA) has been the artificial intelligence (AI) chip leader since the earliest days of this technology boom. This is because the company wisely chose to tailor its graphics processing units (GPUs) to the needs of AI early on -- and it's steadily innovated to remain in the lead.
Still, Nvidia isn't alone in the AI chip market. Other chip designers, such as Advanced Micro Devices and Intel, also participate. And the company even faces competition from some of its own customers, which have started making their own AI chips. A good example is Amazon (NASDAQ:AMZN), a company that has said demand for its in-house chips is so strong that chips may even become a new business for it in the future. Investors have worried that this trend -- particularly from a market giant like Amazon -- could eventually weigh on Nvidia's growth and market share.
Details
But here's some good news: Nvidia may have just eliminated this enormous risk. Let's check out the details.
Source
Originally published at www.fool.com.
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