By Harsh Chauhan
Publication Date: 2026-05-08 11:20:00
Nvidia (NVDA +1.80%) has been one of the biggest beneficiaries of the artificial intelligence (AI) chip boom. Its graphics processing units (GPUs) are parallel processors, designed to break down certain types of massively complex calculations into a host of smaller parts, and then perform all of those small calculations simultaneously, rather than taking each task in sequence. And it turns out, the process of training large language models (LLMs) depends heavily on just the sort of tasks where GPUs excel.
As a result, over the past few years, demand for Nvidia’s industry-leading GPUs has skyrocketed, driving stunning growth in the company’s revenue and earnings.
Major hyperscalers and AI companies, such as Amazon (AMZN 1.40%), Microsoft, Meta Platforms, and Alphabet‘s (GOOG +0.05%) (GOOGL 0.04%) Google, have long relied on Nvidia’s hardware to train powerful AI models.
What’s worth noting is that Nvidia’s rivals haven’t been able to make much of a dent in its AI chip dominance. It controls an estimated 81% of the AI data center chip market, according to IDC. The good news for Nvidia stock investors is that the company’s red-hot growth could continue — the company is forecasting total sales of $1 trillion for its Blackwell and Vera Rubin architectures across 2026 and 2027.
However, there is ample evidence that Nvidia’s position in AI chips is gradually weakening.
Image source: Nvidia.
Nvidia’s customers are turning into competitors
Training LLMs requires a lot of…
