At yesterday’s Nvidia (NASDAQ:NVDA) shareholder meeting, the company’s executives were frequently asked how the firm would maintain its position against rising competition. CEO Jensen Huang replied that the chipmaker is concentrating on data centers and seeking to find new markets for its artificial intelligence (AI) chips. He added that the company’s chips offer the “lowest total cost of ownership” in the sector.
Nvidia Thinks It Can Stave Off Competitors
Huang reported that Nvidia’s current domination of the AI chip space is due to large, multi-billion-dollar investments that it has made in itself for over a decade. Moreover, the chipmaker, which used to concentrate on making graphics processors for video games and creatives, has “transformed” itself into a data center-focused firm.
Meanwhile, Huang asserted that the total cost of Nvidia’s AI chips is cheaper than competing products despite their very high price tags. That’s because they perform better than competing processors and cost less to maintain, the CEO stated.
Also importantly, Nvidia is looking to identify new markets for its chips, including industrial robots, and is seeking to form many alliances in order to accomplish that goal.
Many (But Not All) on the Street Remain Upbeat on NVDA Stock
Knox Ridley, a portfolio manager at Tech Insider Network, recently said that Nvidia would remain on top of the AI sector, just as Apple (NASDAQ:AAPL) stayed ahead of its competitors in the smartphone sector. Eric Jackson, a hedge fund manager at EMJ Capital, predicted that NVDA stock would finish the year at $250, giving it a truly staggering market capitalization of $6 trillion.
However, as of yesterday afternoon, the chipmaker’s market capitalization had sunk $429 billion in the preceding three days, Seeking Alpha reported. And insiders at the company have reportedly disposed of $700 million of its shares in 2024, Bloomberg noted on June 18.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
