Nvidia’s AI success history gets the first crack – the competition is getting bigger, customers try to make themselves less dependent on the market leader. An analyst believes that there is still no reason to worry.
• NVIDIA share with a reset, but continued in the plus in the long term
• Growing competition and customers rely on their own AI chips
• Analyst sees no acute danger
Success-spoiled investors of the Nvidia share experienced a stock exchange recipient in 2025. The NVIDIA share has lost around 12.5 percent over the course of the year and has shown strong fluctuations. In the view of twelve months, however, the share certificate is still 30 percent higher – for the past three years, investors even have an increase of over 336 percent in the deposit.
Nvidia is the market leader – still
The dominance of the tech group in terms of AI chips also contributed to this. There are currently hardly any alternatives to the NVIDIA products if you are looking for high-performance semiconductors for use in AI applications. The group’s customers, including well -known technology giants such as Amazon, Meta, Alphabet and Microsoft, also know this. However, it has also launched their own AI initiatives some time ago in order to become increasingly independent of Nvidia. In addition, direct competition also increases – especially from China, semiconductor alternatives come.
Analyst sees no acute threat to Nvidia
“The most worst secret in the technology industry is that Nvidia’s customers are trying to reduce their dependence on Nvidia by building their own chips,” Richard Windsor, an independent analyst at Radio Free Mobile, also confirmed to “Marketwatch”. However, the expert does not see acute danger to Nvidia: “But this process is slow,” he emphasized.
He also referred to the frequency with which the semiconductor manufacturer brings new chips onto the market. This is a factor that distinguishes Nvidia. “The latest NVIDIA product (currently Blackwell) is always a generation for everyone else, which means that even with Nvidia’s gross margins of over 70 % it will be most cost -effective.”
Against this background, Windsor does not see Nvidia’s market position threatened. Nvidia “is not in danger yet,” he wrote.
Presented new plans
In fact, as part of this year’s GTC, a global developer conference for the area of artificial intelligence, Nvidia presented ambitious plans to ensure the company’s supremacy.
In addition to a platform that is supposed to accelerate the development of humanoid robots, Nvidia has given its view of data centers as “AI factories” in which computer performance for artificial intelligence is. “Every industry that produces something will have two factories in the future,” said company boss Jensen Huang at the in -house event. One will manufacture the physical products as before – and the second will deliver the software for it.
In addition, the company will launch a new chip generation with “Vera Rubin” from autumn 2026. Rubin and the further development of the current Blackwell platform for this year should drastically reduce the costs for the operation of AI software compared to previous technology.
Editor finance.net
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