"Nvidia, with 90% of the artificial intelligence (AI) chip market, will surge because of how quickly and violently the fight over AI supremacy will become. The balance of the Magnificent 7 will beat on each other in an attempt to lead the field. The beating will extend to dozens of other public companies, like Oracle, and such privately held ones as OpenAI, xAI, and Anthropic. They all need chips."
"Nvidia has made some relatively small investments in other AI companies, but these are mostly to build and fund its customer base. It will invest as much as $100 billion in OpenAI (which seems like a lot, but isn't today), but most of this will be to fund chip purchases. Nvidia also has a $20 billion deal with xAI and an investment agreement with Anthropic. All the AI startups need cash for R&D and to build the massive data centers on which their businesses rest. Each data center needs chips as its engine."
Nvidia commands roughly 90% of the AI chip market and is poised to far outperform other Magnificent 7 stocks in 2026. Nvidia has invested in major AI customers and may invest up to $100 billion in OpenAI, along with a $20 billion deal with xAI and an agreement with Anthropic, primarily to fund chip purchases. AI startups need capital for R&D and massive data centers, and total data-center investment through 2030 is expected to be about $3 trillion. AMD holds under 10% share, limiting competition, and potential access to China could add a roughly $50 billion market. Revenue growth is near 60%.
Read at 24/7 Wall St.
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