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Nvidia Stock Slips. Another Big Tech Company Is Making Its Own AI Chips.

Nvidia stock was edging down early on Tuesday. The chip maker's dominance of the market for artificial-intelligence chips could be challenged by technology companies making custom hardware.

Nvidia shares were down 1.5% at $907.53 in premarket trading. The stock closed up 3.8% on Monday.

$NVIDIA Corp(NVDA)$   stock has risen above $900 in the wake of earnings reports from a series of major technology companies including $Microsoft(MSFT)$  , $Amazon.com(AMZN)$   and $Meta Platforms, Inc.(META)$   which included commitments to invest in AI infrastructure.

Those investments are generally good news for Nvidia but the Big Tech companies are also developing in-house chips to reduce the cost of AI development. The latest company to follow that path is Apple, which has been developing its own AI chips for data-center servers, The Wall Street Journal reported late Monday.

$Apple(AAPL)$  's chips are unlikely to directly rival Nvidia's with their focus being more on inference -- the process of generating answers or results from AI model -- rather than training, according to The Journal. However, it's a reminder that the AI chip market is likely to diversify over time as demand moves from training to inference.

Among other chip makers, Advanced Micro Devices was down 0.7% and Intel was up 0.3% in premarket trading.

The trend for Big Tech companies to make in-house chips reinforces the need for Nvidia to seek out other markets. On Tuesday, U.K. self-driving start-up Wayve Technologies said Nvidia was a new investor in the company as it raised more than $1.0 billion in a funding round.

Nvidia shares have risen 86% this year to date through to Monday's close. That compares with a 8.6% rise in the S&P 500 index and a 8.9% rise in the Nasdaq Composite Index over the same period.

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