Nvidia Stock Investors Just Got a Grim Warning From Apple and Amazon

Semiconductor company Nvidia (NASDAQ: NVDA) dominates the market for artificial intelligence (AI) chips. In fact, analysts estimate its graphics processing units account for up to 95% of AI chip sales. But history is full of cautionary tales about the downfall of dominant brands that failed to maintain their technological leadership.IBM was once a highly esteemed computing company due to its mainframes and storage solutions, but it failed to innovate around cloud computing and PCs. Cisco was briefly the most valuable company in the world, back when the internet buildout drove demand for its networking products, but it no longer ranks among the top 50 because it failed to innovate.Those are just two examples from a long list that includes AOL, BlackBerry, Blockbuster, Kodak, and MySpace. To be clear, Nvidia is in no immediate danger of joining that list, but history says shareholders would be foolish to dismiss the idea completely. Indeed, recent warnings from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) make it clear that Nvidia is not immune to competition.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool