Nvidia Shares Slide 7% as Rivals Secure $425B in AI Chip Deals
Shares of Nvidia have dropped 7% since their April 27 record high while the Philadelphia semiconductor index has gained about 9%, reflecting investor concerns over competition. Major customers and rivals—Anthropic’s $200 billion Google contract, Amazon’s $225 billion Trainium commitment, Meta’s chip plans and CPU power from Intel and Qualcomm—are heightening the threat.
1. Market Reaction
Nvidia shares have fallen 7% since April 27’s record high, underperforming the Philadelphia semiconductor index, which has risen about 9%. This divergence reflects growing investor concern over competitive pressures in the AI chip sector.
2. Competitor Commitments
Anthropic plans to spend $200 billion on Google’s TPUs over five years, while Amazon’s Trainium chips have secured $225 billion in revenue commitments, including a multi-billion deal with Meta. Intel and Qualcomm are also advancing in data center chip development, intensifying competition.
3. Market Share and Outlook
Nvidia maintained an 86% share of the AI accelerator market in 2025, unchanged from 2024, but rising rival commitments are raising doubts about its long-term growth trajectory. Year-to-date gains of 7.8% lag the 60% jump in the Philadelphia semiconductor index.