Bitget
Bitget

# AI

Nvidia CEO Defends AI Chip Dominance Amid Rising Competition

Nvidia, AI, Stock

KEYTAKEAWAYS

  • Amazon reaches $2 trillion market valuation, joining an elite group of tech giants.
  • AI-driven rally and recovering Amazon Web Services fuel stock price surge.

CONTENT

Jensen Huang addresses shareholders’ concerns about market competition following Nvidia’s historic stock surge, attributing the company’s success to long-term AI investments and strategic partnerships.


At Nvidia’s recent shareholder meeting, CEO Jensen Huang addressed growing concerns about competition in the AI chip market, following the company’s remarkable 200% stock surge over the past year. Huang’s comments came as Nvidia continues to dominate the AI chip sector with over 80% market share, despite increasing challenges from both established chipmakers and startups.

 

Huang emphasized that Nvidia’s current advantage in AI chips stems from a strategic bet made more than a decade ago, involving billions of dollars in AI investment and the efforts of thousands of engineers. This long-term commitment, he argued, has positioned Nvidia at the forefront of the AI revolution.

 

The CEO outlined Nvidia’s strategy to maintain its market leadership, focusing on three key areas. First, he noted the company’s transformation from a gaming-focused entity to a data center-centric business. Second, Nvidia is actively creating new markets for its AI technologies, particularly in industrial robotics. Lastly, the company aims to partner with every major computer manufacturer and cloud provider to expand its reach.

 

Huang also addressed the cost-effectiveness of Nvidia’s AI chips, stating that they offer the “lowest total cost of ownership.” This claim suggests that while competitors may offer less expensive chips, Nvidia’s products provide superior value when considering performance and operational costs.

 

The CEO highlighted Nvidia’s achievement of a “virtuous circle” in the tech industry, where its widespread availability through major cloud providers and computer makers creates a large and attractive install base. This ecosystem, in turn, makes Nvidia’s platform increasingly valuable to customers and developers.

 

Despite the positive outlook, Nvidia’s shares experienced a slight dip of over 1% in trading on Wednesday. However, shareholders expressed their satisfaction with the company’s performance by approving a nonbinding vote on executive compensation.

 

Nvidia’s recent milestones include a 10-for-1 stock split, surpassing a $3 trillion valuation, and briefly becoming the most valuable public company. As the AI chip market continues to evolve, Nvidia’s ability to maintain its competitive edge will be crucial for its future growth and market position.

 

>>> More to read :

 

 

binance ref


DISCLAIMER

CoinRank is not a certified investment, legal, or tax advisor, nor is it a broker or dealer. All content, including opinions and analyses, is based on independent research and experiences of our team, intended for educational purposes only. It should not be considered as solicitation or recommendation for any investment decisions. We encourage you to conduct your own research prior to investing.

 

We strive for accuracy in our content, but occasional errors may occur. Importantly, our information should not be seen as licensed financial advice or a substitute for consultation with certified professionals. CoinRank does not endorse specific financial products or strategies.


WRITER’S INTRO

CoinRank Exclusive brings together primary sources from various fields to provide readers with the most timely and in-depth analysis and coverage. Whether it’s blockchain, cryptocurrency, finance, or technology industries, readers can access the most exclusive and comprehensive knowledge.


NEWSLETTER

SUBSCRIBE

CoinRank