Nvidia's stock ends a volatile week amid shifting alliances in the AI hardware space, as Meta, OpenAI, and other major players expand their chip procurement beyond Nvidia. The move signals a pivotal moment in the AI infrastructure landscape.
- Meta Platforms will deploy AMD's AI chips across its training infrastructure.
- OpenAI has reduced Nvidia chip usage by 35% and adopted Amazon's Trainium2 processors.
- Amazon's AI chip shipments to third-party developers rose over 60% YoY.
- Nvidia’s market cap fell 8.4% during the week, closing at $1,023.70.
- AMD's stock gained 6.2% on increased AI chip demand.
- Nvidia retains 80% of the AI chip market but faces erosion from diversified suppliers.
Nvidia's market dominance in AI accelerators is facing its most significant challenge yet, as top-tier technology firms increasingly adopt alternative chip suppliers. Meta Platforms Inc. has confirmed it will deploy AMD's latest AI-optimized processors across its AI training infrastructure, marking a strategic shift from exclusive reliance on Nvidia's Hopper and Blackwell architectures. This decision follows reports that Meta is also evaluating Google's custom Tensor Processing Units (TPUs) for future workloads, signaling a broader diversification of its AI hardware stack. Meanwhile, OpenAI has begun integrating Amazon Web Services' custom silicon—known as Trainium2—into its large language model training pipelines. The company has reportedly reduced its dependency on Nvidia chips by 35% over the past six months, with internal benchmarks showing comparable performance at a lower cost per training hour. AWS has not disclosed exact volumes, but industry analysts estimate Amazon's AI chip shipments to third-party developers have increased by over 60% year-over-year. These developments come as Nvidia's market capitalization dipped by 8.4% during the week, reversing gains seen earlier in 2026. The stock closed at $1,023.70, reflecting investor concerns over the sustainability of its growth trajectory. While Nvidia remains the leader in AI chip revenue—with an estimated 80% market share in high-performance computing—its lead is narrowing as competitors ramp up investments in domain-specific designs and software integration. The shift has ripple effects across the semiconductor ecosystem. AMD’s stock rose 6.2% in the same period, driven by investor optimism over its growing AI chip share. Meanwhile, AWS and Google are accelerating their AI infrastructure offerings, positioning themselves as full-stack alternatives to Nvidia’s hardware-software stack. The trend underscores a maturing AI market where performance, cost efficiency, and supply chain flexibility are becoming as critical as raw compute power.