Zaid

NVIDIA could take a big hit.

And finally, the last concern when it comes to NVIDIA is competition.

Now look, NVIDIA still dominates the AI chip market, but for the first time, it feels like competition is getting serious.

And the reason competition is heating up is because the industry is shifting.

AI is moving from the training phase where you need massive GPU clusters to train frontier AI models, something that NVIDIA chips are really good at,

to the inference phase, which is actually running AI to answer queries from users.

The thing is inference doesn't always require the same level of GPU power that training does.

And that's opening the door for alternative chips like AMD.

In fact, AMD just announced a $100 billion partnership with Meta.

And Meta said that these AMD chips will primarily handle inference workloads.

And then you have some of these hyperscalers working on their own AI chips.

Google already has their TPU chips.

Amazon has their Tranium chips.

And Microsoft and Meta are working on their own custom silicon as well.

These hyperscalers just don't want to be reliant on NVIDIA.

So that could hurt NVIDIA's market share and pricing power down the road.

Now, NVIDIA kind of brushed off the competition concerns on the conference call to CFO so that NVIDIA is the king of inference, which I guess is true for now.

But you know, there are a few reasons to be bullish on NVIDIA.

So let's talk about the bull case moving forward and why some people think that NVIDIA is undervalued right now, despite being the most valuable company in the world.

Okay, so I've laid out some real concerns when it comes to NVIDIA, but there are several reasons to believe that NVIDIA's generational run still has legs and that the AI trade is alive and well.