Saxo Bank's Bold Predictions for 2025

Nvidia's AI Dominance Faces Rising Challenges

Nvidia, the preeminent AI chip manufacturer, recently reported a staggering 94% revenue increase and more than double its profits. Despite these impressive figures, investor uncertainty looms, leading to stock price corrections. The company's success is largely attributed to robust AI investments in the U.S. and the anticipated launch of the new 'Blackwell' chip generation in 2024. However, competition is intensifying, with Amazon developing its own chips to reduce reliance on Nvidia. Apple’s shift towards AWS AI chips further underscores the potential for alternatives to Nvidia's offerings. Analysts predict challenges for rivals like Marvell, yet they recognize the market's evolving dynamics. While Nvidia's stock has surged in recent years, questions linger regarding the sustainability of its high profit margins. As the AI landscape transforms, Nvidia's leadership will be tested by both emerging competitors and shifting industry alliances.