ING: Nvidia's profit margins face threat from customers' self-developed chips

BlockBeats news, July 7, Jan Frederik Slijkerman of ING Group wrote in a report that as tech giants develop their own chips, there is uncertainty about Nvidia's ability to maintain profit margins.

He pointed out that major customers such as Microsoft, Alphabet, and Amazon are developing their own custom chips to help control AI infrastructure costs (capital expenditure efficiency).

He said that therefore, Nvidia's pricing power may face more intense competition than in recent years, making it more difficult to maintain its current extremely high profit margins in the long term, even as the company expands into new business lines.

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