Nvidia Faces Chip Rivalry, AI Spend Questions, and U.S.-China Export Curbs

According to Lianhe Zaobao citing Bloomberg, Nvidia’s market value briefly reached USD 5 trillion at the end of October 2025 as investors piled into the company over the past few years. The article said Nvidia remains close to monopolizing the global AI chip market, but customers including Amazon, Microsoft and Google are simultaneously spending heavily on Nvidia chips while accelerating work on their own products. AMD has also made inroads with large orders from OpenAI and Oracle. Nvidia’s most profitable product is its Blackwell AI accelerator chip, which evolved from graphics processing units used for video games. Nvidia said Blackwell is 2.5 times faster than the previous-generation Hopper chip for training AI models. The company also sells supporting software, server systems and high-speed interconnect technology that lets customers link thousands, or even tens of thousands, of chips into a single system. Nvidia said it holds about 90% of the data center GPU market and plans to launch a new flagship product every year. The article said some market participants are increasingly worried that the AI spending boom is expanding too quickly, with questions over whether current AI applications can generate enough profit to support the huge data center investments. Nvidia Chief Executive Jensen Huang rejected the idea that the AI boom is a bubble and said the world is entering a new computing era. He has also lobbied governments to ease restrictions so Nvidia can sell advanced chips to more markets. Nvidia is also facing competition from customers designing their own chips. AMD is planning to launch its next-generation MI450 chip next year, while Amazon, Google and Microsoft are developing in-house chips to reduce reliance on Nvidia. In response, Nvidia has begun opening its NVLink high-speed interconnect technology so other companies’ processors can connect to Nvidia server systems. The article said Nvidia’s bigger risk comes from the U.S.-China technology rivalry, with Washington restricting exports of advanced chips to China and Beijing urging companies to switch to domestic products.