Bill Gates Sounds the Alarm on Nvidia — The AI Chip War Is Heating Up
Nvidia (NASDAQ:NVDA) is riding high, but the AI chip race is heating up fast. Microsoft (NASDAQ:MSFT) co-founder Bill Gates (Trades, Portfolio) praised CEO Jensen Huang’s leadership, but he didn’t sugarcoat the challenge ahead. Big Tech isn’t sitting backAmazon (NASDAQ:AMZN) has committed $8 billion to Anthropic’s AI chip efforts, Google (NASDAQ:GOOG) just dropped a supercomputer with its own AI chip, and Broadcom (NASDAQ:AVGO) and Marvell (NASDAQ:MRVL) are rolling out advanced custom silicon. But the real wild card? DeepSeek, a Chinese AI firm that came out of nowhere with RI, a model delivering ChatGPT-level performance at a fraction of the cost. Investors betting on Nvidia’s long-term AI dominance are now watching closely.
DeepSeek’s rise is no fluke. Backed by hedge fund High-Flyer, it has amassed a GPU arsenal worth over $500 million, sidestepping export controls to get its hands on thousands of Nvidia’s H100 and H800 chips. The company moves fastno bureaucracy, no red tapejust raw innovation. Its breakthroughs, like Multi-Head Latent Attention (MLA), are slashing AI costs and shaking up the market. And DeepSeek isn’t just catching upit’s pushing AI efficiency so far that it’s raising a bigger question: Do we even need as much compute power as before? If AI models can be trained and run with fewer GPUs, that’s a direct threat to Nvidia’s pricing power.
For now, Nvidia is still king, but cracks are forming. If AI becomes less about brute-force compute and more about efficiency, demand for Nvidia’s high-end chips could soften. Throw in U.S.-China trade tensions, and the long-term picture gets even murkier. Investors should keep an eye on how Nvidia, Microsoft, and the rest of Big Tech respond because DeepSeek isn’t just another AI startupit’s a sign that the AI chip game is evolving fast.
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Nvidia (NVDA)
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, the company’s focus has evolved from PC graphics to artificial intelligence (AI) based solutions that now support high performance computing (HPC), gaming and virtual reality (VR) platforms.
NVDA boasts a Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 126.2% year-over-year for 2025, while Wall Street anticipates its top line to improve by 111.8%.
One analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.94 per share for 2025. NVDA boasts an average earnings surprise of 9.8%.
On a historic basis, Nvidia has generated cash flow growth of 50.2%, and is expected to report cash flow expansion of 303.7% this year.
NVDA should be on investors’ short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.
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Bill Gates Sounds the Alarm on Nvidia — The AI Chip War Is Heating Up, source
