Earlier this week, Cathie Hout emphasized the increasing competition for Nvidia Corp (NASDAQ:NVDA) as ARK Investment Management predicts that custom AI chips could control more than a third of the computer market by the end of the decade.
ARK sees custom silicon reshaping the AI computing market
Frank Downingsaid ARK’s research director for the next-generation Internet in a message at X that the company expects that “by 2030, more than a third of the computer market will be custom silicon.”
He defined custom as non-GPU chips – essentially alternatives to products from Nvidia and Advanced Microdevices, Inc. (NASDAQ:AMD) – although he noted that the boundaries of the industry are “blurring.”
“Everyone knows about Google’s TPU, but Amazon is the sleeping giant that’s waking up,” Downing wrote.
A chart shared by Downing shows that traditional servers are rapidly losing market share to accelerated computing, with application-specific integrated circuits (ASICs) gaining ground alongside GPUs through 2030.
Wood amplified the message, sharing the message and adding, “Competition for Nvidia.”
Amazon-OpenAI deal signals shift beyond Nvidia GPUs
Amazon has committed up to $50 billion to the ChatGPT maker and expanded an existing computer deal by $100 billion over eight years.
A key part of the deal revolves around OpenAI’s use of Amazon’s custom Trainium chips, including next-generation versions expected in 2027. OpenAI will consume approximately 2 gigawatts of Trainium capacity, underscoring the scale of the deployment.
Nvidia Q4 Sales Soar 73%, Q1 Outlook Beats Estimates
Meanwhile, Nvidia reported fourth-quarter revenue of $68.13 billion, up 73% from a year ago and surpassing the Street consensus estimate of $66.0 billion.
For the first quarter, the company expected revenue between $76.44 billion and $79.56 billion, well above analysts’ estimate of $71.96 billion.
Price promotion: Nvidia shares are down 7.41% over the past five days. In after-hours trading, shares rose 0.34% to $177.80.
Nvidia scores high in terms of quality Benzinga’s Edge Stock Rankingswhich reflects a strong long-term upward trend, although short- and medium-term price developments appear weaker.
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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