Nvidia dominates the AI chip market with an 80-95% market share. Despite strong performance, a high stock price and potential competitive pressures are concerns. Monitoring R&D spending is important, but Nvidia appears to be underinvesting while maintaining a dominant market share. Intel is spending significantly more on R&D, and AMD has a higher R&D spend as a percentage of revenue.
Nvidia’s success in AI chips faces competition from Intel, AMD, and private start-ups. Diversifying investments in other chipmakers may be a good strategy to mitigate risks and capitalize on AI demand.