Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInvestorNvidia stock falls behind as Big Tech rivals enter its territoryThe chipmaker’s grip on the AI processor market is increasingly under threat from other manufacturers and its biggest customersAuthor of the article:Last updated May 06, 2026 You can save this article by registering for free here. Or sign-in if you have an account.None of this has dampened enthusiasm about Nvidia among Wall Street analysts. Of the 80 tracked by Bloomberg that cover the company, there are only three hold ratings and one sell. Photo by Justin Sullivan/Getty ImagesThis earnings season has delivered plenty of good news for the artificial intelligence trade, but instead of bidding up Nvidia Corp. shares, investors have been dumping them.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorNvidia, whose graphics processing units, or GPUs, dominate the market for AI chips, has fallen seven per cent since closing at a record high on April 27. Over that span, the stock is one of the worst performers in the Philadelphia semiconductor index, which is up about nine per cent.The reason is that even as tech giants keep pledging to spend more on computing gear, Nvidia’s grip on the AI processor market is seen as increasingly under threat from other chipmakers as well as its biggest customers.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againNvidia rose as much as 2.6 per cent in early trading Wednesday.On Tuesday the publication the Information reported that Anthropic PBC, which is already a major customer of Google’s chips, is planning to spend about US$200 billion with the Alphabet Inc.-owned company over the next five years. That comes a week after Alphabet said it would start offering its tensor processing unit, or TPU, chips to select customers for use in their own data centres.Amazon.com Inc., meanwhile, said its Trainium line of custom AI chips have more than US$225 billion in revenue commitments and it recently announced a multibillion-dollar pledge from Meta, which is itself preparing to deploy homegrown AI chips. Meanwhile, Intel Corp. is benefiting from AI growth and Qualcomm Inc. is also making headway in the data centre market.“The problem with having basically 100 per cent market share is that there’s only one direction for it to go, and it certainly seems like these companies could be credible competitors,” said Bill Stone, chief investment officer at Glenview Trust Company.There is little evidence so far to suggest that Nvidia is losing significant ground to rivals. The company’s share of the AI accelerator market was 86 per cent in 2025, unchanged from 2024, according to data compiled by Bloomberg Intelligence. But the threat is raising doubts about the outlook for its long-term growth and making other stocks look relatively more attractive.Nvidia shares are up 7.8 per cent this year, roughly in line with the S&P 500, but the gain pales in comparison to other chip-related companies. The Philadelphia semiconductor index has jumped 60 per cent, leaving Nvidia as one of the worst performers among the benchmark’s 30 constituents in 2026.“If we start to get the sense that Nvidia is losing marginal business, that rivals are chipping away at its market share or pricing power, then that could start to erode its earnings momentum and we could see the stock fall off as a result,” said Stone, who helps oversee US$18 billion in assets.A representative for Nvidia declined to comment, citing a quiet period.Insatiable demand for AI computing gear fueled Nvidia’s rise to become the world’s most valuable company with a market value of US$4.8 trillion. But it is close to being overtaken by Alphabet, which has seen its market value soar by more than US$2.5 trillion over the past year amid excitement about its AI services, which include its popular Gemini chatbot, as well as cloud computing and chip businesses. Alphabet closed on Tuesday with a market value of about US$4.7 trillion.Of course, Nvidia’s revenue growth is still booming. The projected 70 per cent expansion in its current fiscal year, which ends in January, dwarfs growth expected from other megacaps and would be an increase from last year’s 65 per cent clip. But it is expected to slow to 32 per cent in fiscal 2028, before narrowing further in the subsequent two years. The company is scheduled to report first quarter earnings on May 20.For Nvidia bulls, demand for AI processors remains so strong that there is plenty of revenue growth to go around. Alphabet, Amazon, Meta and Microsoft plan to spend as much as US$725 billion this year on capital expenditures and significantly more in 2027. The four companies account for about 45 per cent of Nvidia’s revenue, according to supply chain data compiled by Bloomberg.However, most of these companies “appear to be putting equal emphasis on heterogenous deployments” of both Nvidia’s chips and custom-made chips, Bank of America analyst Vivek Arya wrote in a research note on April 29.Notably, Alphabet’s TPUs are seen as one of the best alternatives to Nvidia’s products, and the business has been called Alphabet’s “secret sauce,” given they were specifically designed to accelerate machine learning workloads.In a sign of how meaningful this business could be, Citizens analyst Andrew Boone estimated that Alphabet will generate about US$3 billion of revenue from TPU-related infrastructure in 2026, increasing to US$25 billion in 2027.“I wouldn’t say that Nvidia’s competitive positioning is materially threatened by these new chips, but the market action in Nvidia reflects how people are starting to question its market share, its competitive moat and its margins,” said Clayton Allison, portfolio manager at Prime Capital Financial, which has about US$40 billion in assets.Late Tuesday, Advanced Micro Devices Inc. said it is expecting a significant jump in demand for central processing units, or CPUs, as the type of generalist chips take on a bigger role in running AI services. AMD jumped 20 per cent on Wednesday.None of this has dampened enthusiasm about Nvidia among Wall Street analysts. Of the 80 tracked by Bloomberg that cover the company, there are only three hold ratings and one sell. Estimates for Nvidia’s earnings in fiscal 2027 have risen by 11 per cent over the past quarter, while the view for revenue is up by the same amount. Estimates for 2028 have moved up even higher, suggesting investors remain confident about its long-term trajectory.“Nvidia used to be the sure thing in AI, but it has fallen out of favour on that front, while Alphabet is now the can’t-miss AI darling,” said Glenview’s Stone. “I don’t think new chips will represent a fatal blow, but they’ll make it harder for Nvidia to regain its momentum. I’m not selling, but I’m not buying the dip, either.”—With assistance from Subrat Patnaik and Neil Campling. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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