Posted 3/14/2024, 9:06:00 AM
Nvidia Faces Uncertain Future as Top AI Customers Build Their Own Chips
- Nvidia is the face of the AI revolution, with its GPUs powering AI-accelerated data centers
- Nvidia's 4 largest customers (Microsoft, Meta, Amazon, Alphabet) account for 40% of total revenue
- These top customers are developing their own AI chips to reduce reliance on Nvidia
- Even if they keep buying Nvidia GPUs, orders are likely peaking in 2024 and will fall thereafter
- This heavy customer concentration where top customers are moving away poses a scary scenario for Nvidia