Amazon Sent a Big Warning to Nvidia Shareholders. Is the AI Stock in Trouble?
Nvidia (NASDAQ: NVDA) shares have surged 145% over the past year due to the semiconductor company's critical position in the artificial intelligence (AI) economy. Specifically, Nvidia graphics processing units (GPUS) are the industry standard in accelerating complex data center workloads like training machine learning models and running artificial intelligence applications.
Earlier this year, The Wall Street Journal reported, "Nvidia's chips underpin all of the most advanced AI systems, giving the company a market share estimated at more than 80%." Some analysts believe Nvidia controls as much as 95% of the AI chip market. But Amazon (NASDAQ: AMZN) recently issued a warning for Nvidia shareholders.
Amazon CEO Andy Jassy recently told analysts no single artificial intelligence chip will fit every use case, simply because companies and developers want optionality. "You saw this several years ago when some companies tried to argue that TensorFlow will be the only machine learning framework that mattered, and then PyTorch and others overtook it," Jassy explained.
Source Fool.com
