End of Nvidia stock rallies?
Nvidia's stock has experienced a significant surge, rising an impressive 193 percent in the past year, driven by the high demand for AI chips. The company's dominance in the AI chip market is a key factor behind this success. However, the landscape may be changing as OpenAI, a major player in AI services, is expanding its infrastructure.
OpenAI is collaborating with Broadcom and TSMC to develop an AI chip. If this chip outperforms current products, it could potentially be a challenge for Nvidia. Yet, it's important to note that the chips powering OpenAI's data centers have not been identified as their own hardware. Nvidia remains the leading supplier of AI accelerators and GPUs in the industry.
OpenAI's focus seems to be on building massive AI infrastructure capacity and advancing AI models, rather than entering the chip market directly. They are investing heavily in AI infrastructure through their Stargate platform, partnering with Oracle to develop over 5 gigawatts of data center capacity expected to run over 2 million chips.
While OpenAI's expansion into AI hardware could signal a potential disruptor in the market, it does not currently indicate a direct threat to Nvidia's market dominance. The competitive landscape remains strong, with competitors like AMD also advancing their AI accelerator roadmaps to capture portions of the rapidly growing AI data center market.
Investors seeking diversification may want to consider the BÖRSE ONLINE Artificial Intelligence Index, developed by Börsenmedien AG. However, it's worth noting that the CEO and majority shareholder of the publisher, Mr. Bernd Förtsch, as well as the CEO, Mr. Leon Müller, have direct and indirect positions in Nvidia.
The future of Nvidia's stock market dominance may be subject to change, as established semiconductor giants have lost their leadership in the past (Intel). Most experts and analysts do not predict an immediate decline in Nvidia's stock, but they see a potential 13% upside. The experts recommend buying Nvidia shares due to the predicted upside.
OpenAI's development of an AI chip could potentially compete with Nvidia's offerings in the future. Yet, for now, Nvidia's leadership in AI chips remains supported by strong industry demand and competitive product roadmaps from established semiconductor companies.
Nvidia's dominance in AI chip market may face competition, as OpenAI is developing an AI chip in collaboration with Broadcom and TSMC. Investors, seeking diversification, might consider the BÖRSE ONLINE Artificial Intelligence Index, which includes Nvidia, but it's worth noting the CEO and majority shareholder of the index's publisher have direct and indirect positions in Nvidia.
