Nvidia's $4 Trillion Rally Faces Rising Threats Amid AI Chip Competition

• Nvidia's stock is down 9.1% from its peak, underperforming the S&P 500, despite a massive 1,200% three-year gain.
• The company faces increasing competition from rivals like Advanced Micro Devices Inc. and major clients (Alphabet Inc., Amazon.com Inc.) developing their own AI chips.
• Concerns are growing about the sustainability of AI spending and Nvidia's investments in customers potentially propping up demand.
• Despite challenges, Wall Street analysts largely maintain 'buy' ratings, projecting a 37% gain and over $6 trillion market value.
• Strong demand for AI computing, upcoming Rubin chips, and a relatively cheap valuation compared to peers support future growth.

Why It Matters: Nvidia's dominant AI chip position faces growing competition and market scrutiny, yet strong demand and analyst confidence persist.