Nvidia Corp (NASDAQ:NVDA) stock is trading higher Friday, still basking in the artificial intelligence-fueled boom as its peers and startups struggle to catch up.
A massive upgrade to Nvidia’s sales forecast, driven by AI, helped it hit a market capitalization above $1 trillion in May. Still, demand will likely outstrip supply for its latest chips well into 2024.
SambaNova, Graphcore, and Tenstorrent have together raised over $3 billion over the last several years to catch up with the AI frenzy, Financial Times cites Dealroom.co.
Cerebras, a Silicon Valley-based AI chip startup that has raised $730 million, is looking to build and run a network of supercomputers for Abu Dhabi-based tech group G42.
Jakub Zavrel of Zeta Alpha noticed that none of these startups are making significant revenue.
He expected Advanced Micro Devices, Inc (NASDAQ:AMD) as more likely to win a share from Nvidia than its peers. Intel Corp (NASDAQ: INTC) is also a critical contender, while Amazon.Com, Inc (NASDAQ: AMZN) Amazon Web Services, and Microsoft Corp (NASDAQ:MSFT) focused on developing their custom silicon for AI.
Experts deem it baseless for startups to compete with a trillion-dollar company with unlimited resources.
Nvidia seems to have recovered from the brief setback from Taiwan Semiconductor Manufacturing Company Ltd’s (NYSE:TSM) lackluster second-quarter results.
Price Action: NVDA shares traded lower by 1.68% at $447.73 on the last check Friday.
