Nvidia Shares Drop as AMD Gains Amid Arista's Shift
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15 hours ago
0mins
Should l Buy NVDA?
Source: Newsfilter
- Market Share Shift: Arista Networks CEO Ullal indicated that Nvidia's market share has dropped from 99% to 20%-25% over the past year, suggesting a significant increase in AMD's acceptance as a preferred accelerator, which could threaten Nvidia's dominance.
- Stock Movements: Nvidia's shares fell nearly 3% while AMD's rose close to 1%, reflecting differing investor expectations regarding the future prospects of both companies, particularly amid intensifying competition in the AI processor market.
- Reduced Technology Dependency: Nvidia is gradually decreasing its reliance on Arista's technology as it has developed its own networking solutions to connect AI chips, which may lead to a decline in demand for Arista's offerings and negatively impact its stock performance.
- Industry Dynamics: Despite Nvidia holding approximately 90% of the AI chip market, increasing competition from AMD and Google could affect Nvidia's long-term growth potential, especially in the rapidly evolving AI infrastructure landscape.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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