Nvidia faces its biggest threat yet as tech giants build their own AI chips
Nvidia's shares have fallen 9% over six sessions as investors worry about the company's grip on the AI processor market amid rising competition from tech giants like Alphabet and Amazon. Nvidia's market share in the AI accelerator market remained at 86% in 2025, but the threat from rivals is raising doubts about its long-term growth.
Nvidia's shares have dropped 9% over six sessions after reaching a record high on April 27, despite the company's dominant position in the AI chip market. The decline is attributed to concerns that Nvidia's grip on the market is under threat from other chipmakers and its biggest customers. Tech giants like Alphabet and Amazon are developing their own AI chips, with Anthropic PBC planning to spend $200 billion with Alphabet over the next five years. Amazon's Trainium line of custom AI chips has secured over $225 billion in revenue commitments, including a multi-billion dollar pledge from Meta. Nvidia's revenue growth is expected to slow to 32% in fiscal 2028, down from a projected 70% expansion in its current fiscal year. The company is set to report its first quarter earnings on May 20.
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