By Keithen Drury
Publication Date: 2025-12-19 12:00:00
Nvidia’s dominance in the AI accelerator space could slip simply because it can’t keep up with demand.
Nvidia (NVDA +3.70%) has led the artificial intelligence (AI) investing sector since 2023. While 2025 hasn’t been quite as good a year for its shareholders as the previous two were, the stock is still up around 30% year to date. The chipmaker is still a dominant force in the AI realm, but observers are raising the possibility that its competitors could start taking meaningful market share away from it.
Should Nvidia start to lose its edge over the competition, it may no longer be the best AI stock to own. But over the next five years, which stock could overtake it?
Image source: Getty Images.
Different approaches to the AI computing problem
Nvidia makes graphics processing units (GPUs), which are computing units that can process many thousands of calculations in parallel. This makes them perfectly suited for tasks that require a lot of computing power and that can be broken down into many smaller tasks that can be handled independently. Most artificial intelligence workloads fall into that category. Nvidia’s GPUs have been the most popular parallel processors available since before the AI infrastructure buildout started in 2023, but that may change.
One issue Nvidia is having right now is that demand is outpacing its supply. In its earnings release for its fiscal 2026 third quarter (which ended Oct. 26), CEO Jensen Huang noted that the company was “sold out” of cloud…