Zaid

these companies.

Google, Microsoft, Amazon, and Meta are all expected to see a noticeable decline in free cashflow this year.

In fact, Amazon is expected to go into negative free cashflow from all their CapEx spending.

So it's possible the shareholders of these companies might start pushing back and asking whether this CapEx spending is actually worth it.

In fact, the stock price for all the hyperscalers is in the red this year.

If the stock price continues to fall, there's gonna be more pressure on management to potentially scale back CapEx.

And if that happens,

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.