What happened: Nvidia (NVDA) stock tumbled more than 4% on Thursday as other chipmakers gained.
What’s behind the move: Investors are weighing rising competition for Nvidia, which has so far been the dominant play in the AI infrastructure space. In its earnings call on Wednesday, Amazon (AMZN) noted its in-house chips business is booming while Alphabet’s Google (GOOG, GOOGL) said it plans to sell its custom Tensor Processing Units (TPUs) to select customers who will install the chips in their own data centers.
What else you need to know: Nvidia has largely dismissed any fears that other tech giants will erode its lead in the space, saying that its chips offer greater flexibility for AI developers.
Thursday’s price action created a mixed picture for semiconductor stocks. Qualcomm (QCOM) surged 9% in early trading as it moves further into the data center space. Memory and storage players Sandisk (SNDK), Western Digital (WDC), and Seagate (STX) also rose as Microsoft and Meta on Wednesday noted rising costs for those AI infrastructure components.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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