Everyone's talking about artificial intelligence (AI) these days, and that means everyone is talking about Nvidia (NASDAQ: NVDA) too. The chipmaker originally splashed onto the scene with its graphic processing units (GPUs) for the gaming and graphics markets. But today, these chips also power the training of AI models, and that's helped Nvidia's earnings and share price to explode.
In fact, Nvidia now generates most of its revenue from AI clients and holds about 80% of the AI chip market. That's great, but knowing how quickly things move in technology, it's fair to ask ourselves whether Nvidia can keep up this leadership or if eventually it will lose a significant chunk of market share. After all, it's not the only game in town. Advanced Micro Devices (AMD), for example, has grown its share in the GPU market in recent times and even launched a powerful new chip late last year.
Considering all of this, how solid is Nvidia's moat or competitive advantage? Let's find out.
Source Fool.com