Are Tech Giants (Including DeepSeek) About to Say 'Checkmate' to Nvidia?
Nvidia (NASDAQ: NVDA) has been a clear winner of the artificial intelligence (AI) revolution so far. The company has become the leading AI chip designer, holding about 80% of the market. Nvidia makes the world's most powerful graphics processing units (GPUs) -- these are the chips crucial for major AI tasks like the training and inferencing of models.The biggest technology companies have flocked to Nvidia for these much-sought-after GPUs to power their AI projects, and that's resulted in double- and triple-digit revenue growth for Nvidia quarter after quarter. And this revenue has reached record levels, with Nvidia reporting more than $35 billion in the most recent period. On top of this, Nvidia is highly profitable on sales, with gross margin exceeding 70% on an ongoing basis.But one particular risk has attracted investors' attention in recent times -- a risk that's intensifying and could potentially hurt revenue growth. It's linked to actions taken by some of Nvidia's customers. Are these tech giants about to say "checkmate" to Nvidia? Let's find out.Continue reading
Nvidia (NASDAQ: NVDA) has been a clear winner of the artificial intelligence (AI) revolution so far. The company has become the leading AI chip designer, holding about 80% of the market. Nvidia makes the world's most powerful graphics processing units (GPUs) -- these are the chips crucial for major AI tasks like the training and inferencing of models.
The biggest technology companies have flocked to Nvidia for these much-sought-after GPUs to power their AI projects, and that's resulted in double- and triple-digit revenue growth for Nvidia quarter after quarter. And this revenue has reached record levels, with Nvidia reporting more than $35 billion in the most recent period. On top of this, Nvidia is highly profitable on sales, with gross margin exceeding 70% on an ongoing basis.
But one particular risk has attracted investors' attention in recent times -- a risk that's intensifying and could potentially hurt revenue growth. It's linked to actions taken by some of Nvidia's customers. Are these tech giants about to say "checkmate" to Nvidia? Let's find out.
