By marketplace.org
Publication Date: 2026-02-25 12:00:00
Nvidia reports quarterly results on Wednesday afternoon. While the computer chip designer has repeatedly posted eye-popping sales figures amid the buildout of AI data centers, the company is now looking toward a future when AI happens outside those data centers, too.
Nvidia started out designing graphics chips that powered high-end PCs, for things like video games. The company then figured out those chips could be adapted for AI.
“It just had the right technology at the right time,” said Jacob Bourne, an analyst with eMarketer. “I mean, Nvidia has just crushed the AI data center market. That is really what has pushed it to become the world’s most valuable company.”
And while the AI boom has been very, very good for Nvidia, Matt Bryson, managing director of hardware and semiconductors at Wedbush Securities, said investors are starting to wonder.
“Is there the potential that competition changes that dynamic?” he said.
Competition from, say, AMD — another chip maker that announced a partnership with Meta this week. Google and Amazon are also designing data center chips of their own. So, Nvidia is trying to stay ahead by looking beyond data centers, according to Angelo Zino, senior equity analyst with CFRA Research.
“As AI evolves, I think you’re going to see an increasing amount of compute necessary at the edge level,” he said.
The edge, as in, actual devices that people use — not data centers. Running AI locally can speed up some computations. Zino…
