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Nvidia faces long-term risks as rivals develop AI chips, threatening its market share and valuation.

Market News
12 Nov 2026, 15:30 WIB
Seeking Alpha
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Bearish
Nvidia faces long-term risks as rivals develop AI chips, threatening its market share and valuation.

Nvidia Corporation is at risk of losing market share and profit margins as major tech companies and hyperscalers increasingly develop their own AI chips. Despite ongoing investment in AI data centers, Nvidia's dominance is challenged by competitors like Google, which already holds 25% of the AI chip market. Nvidia's market share is expected to decline to just above 60% by 2030, putting its $4 trillion valuation under pressure. Investors are advised to reduce exposure to Nvidia and consider broader AI-focused ETFs due to rising competition from Nvidia's own customers.

Nvidia's market cap stands at $4.20 trillion as of Nov 12, 2026, 20:21 WIB, with a daily trading volume of 281,514,030 shares on Pluang. The stock price dropped 8.25% in one day, reflecting significant market reaction to competitive pressures in the AI chip sector. Despite the decline, the typical hold time for Nvidia on Pluang is 118 days, and the dividend yield remains at 0.58%.

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