Nvidia stock (NVDA) moved higher on Thursday, recovering some ground after two consecutive losing sessions.
Shares of the chipmaker rose 2% to $209.09 in early trading.
Despite recent volatility, Nvidia stock remains up 9.8% year to date through Wednesday’s close and has gained 41% over the past 12 months.
That performance, however, has lagged the broader semiconductor sector.
Over the same period, the PHLX Semiconductor Index advanced 170%, reflecting investor enthusiasm across a wider range of companies benefiting from the artificial intelligence boom.
AI spending broadens beyond Nvidia
Investor attention has increasingly shifted toward how spending on AI infrastructure is being distributed across the semiconductor ecosystem.
For much of the generative AI boom, Nvidia emerged as the primary beneficiary as demand for its graphics processing units surged among cloud providers, enterprises, and AI developers building large-scale computing infrastructure.
More recently, however, investors have begun focusing on a broader group of companies positioned to capture a share of AI-related spending.
Nvidia’s initial competitive challenge came primarily from Advanced Micro Devices, which sought to gain share in the market for AI accelerators and data-center GPUs.
The competitive landscape has since widened considerably.
Custom chip developers, central processing unit manufacturers, and specialized AI hardware providers are increasingly competing for portions of AI infrastructure budgets that previously flowed largely toward Nvidia’s products.
One of the most significant developments has been the growing effort by large technology companies to develop their own AI processors.
Many of Nvidia’s largest customers have accelerated investments in proprietary chips as they seek to reduce infrastructure costs associated with training and running artificial intelligence models.
Amazon has emerged as one of the most prominent examples of that trend.
Amazon eyes external AI chip market
According to comments made by Amazon executives, the company is exploring opportunities to expand the reach of its internally developed AI chips beyond its own cloud operations.
Peter DeSantis, Amazon’s AI chief, said the company has begun discussions about selling its custom-built AI processors for deployment in third-party data centers.
“We view AI infrastructure as rapidly evolving,” DeSantis said in a Bloomberg interview in Paris. “And we’re constantly looking at ways to get to more customers.”
DeSantis declined to identify potential customers.
Amazon has spent years developing alternatives to Nvidia’s graphics processing units, joining other major cloud providers in creating proprietary hardware designed specifically for AI workloads.
Those efforts accelerated following the emergence of ChatGPT and the rapid increase in demand for artificial intelligence infrastructure.
Nvidia technical analysis
Nvidia shares rebounded from recent lows near $204, recovering toward the $210 level as buyers stepped back into the stock following two sessions of weakness.
Momentum indicators have improved alongside the bounce.
NVDA technical chart.
The RSI has climbed above 60, suggesting strengthening near-term buying pressure, while the MACD has turned positive after a bullish crossover earlier in the session.
Trading volume also picked up during the recovery from the day’s lows.
The $210 area remains the immediate level to watch, with shares attempting to reclaim ground lost earlier this week.
While the intraday trend has turned constructive, the stock has yet to break decisively above recent resistance near $212, leaving the broader short-term range intact.
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