Nvidia's Dominance in AI Faces New Challenges Despite Record Earnings

The semiconductor giant's latest results highlight its market strength but also signal emerging competition and potential headwinds.

Nvidia reported a 262% year-over-year revenue increase, reaching $26 billion in the first quarter of fiscal 2025.
The company announced a 10-for-1 stock split and a 150% dividend increase, aiming to attract broader investor interest.
While Nvidia maintains a 90% market share in AI GPUs, competitors like AMD and Intel are launching rival products.
Major clients such as Microsoft, Meta, and Alphabet are developing their own AI chips, potentially reducing reliance on Nvidia.
Despite strong performance, Nvidia's gross margin is expected to decline due to increased competition and internal developments.