As Nvidia Faces Tougher AI Competition, Its Head Start Will Prove Valuable

Nvidia Corp. (NVDA)  is set to face a much tougher competitive environment in the white-hot market for server co-processors used to power artificial intelligence projects, as the likes of Intel Corp. (INTC) , AMD Inc. (AMD) , Fujitsu and Alphabet Inc./Google (GOOGL) join the fray. But the ecosystem that the GPU giant has built in recent years, together with its big ongoing R&D investments, should allow it to remain a major player in this space.

It's a basic rule of economics that when a market sees a surge in demand that leads to a small number of suppliers amassing huge profits, more suppliers will enter in hopes of getting a chunk of those profits. That's increasingly the case for the server accelerator cards used for AI projects, as a surge in AI-related investments by enterprises and cloud giants contribute to soaring sales of Nvidia's Tesla server GPUs....1227 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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