Nvidia's (NASDAQ: NVDA) dominance has created a strange problem for its competitors, yet building a competing artificial intelligence (AI) chip is no longer enough to catch up. Even if a rival develops a faster processor at a lower price -- already extremely difficult-- it still faces a much bigger challenge: convincing developers to leave Nvidia's ecosystem.
That's because Nvidia's most important product may not be a chip at all. It is the software platform that sits behind it. Understanding that distinction could help investors better appreciate why Nvidia continues to dominate the AI market.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Most investors view Nvidia as a semiconductor company. That makes sense. The company's graphics processing units, or GPUs, have become the workhorses powering everything from ChatGPT to self-driving technology. But focusing only on the hardware risks missing the bigger picture.
A useful comparison may be Apple. People don't buy iPhones simply because of the hardware. They buy into an ecosystem of apps, software, services, and tools that work together seamlessly. The ecosystem is what keeps users coming back.
That's because Nvidia's most important product may not be a chip at all. It is the software platform that sits behind it. Understanding that distinction could help investors better appreciate why Nvidia continues to dominate the AI market.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Most investors view Nvidia as a semiconductor company. That makes sense. The company's graphics processing units, or GPUs, have become the workhorses powering everything from ChatGPT to self-driving technology. But focusing only on the hardware risks missing the bigger picture.
A useful comparison may be Apple. People don't buy iPhones simply because of the hardware. They buy into an ecosystem of apps, software, services, and tools that work together seamlessly. The ecosystem is what keeps users coming back.
1 month ago
