Chip stocks moved in different directions after a key networking supplier suggested customers are diversifying away from Nvidia’s near-monopoly in AI accelerators.

## What happened

Shares of **Nvidia** fell nearly **3%** while **AMD** gained close to **1%** after **Arista Networks** CEO Jayshree Ullal told investors that a meaningful portion of the company’s AI-related deployments are shifting toward AMD.

Ullal said that about **20% to 25%** of deployments now favor AMD, versus an estimated **~99% Nvidia** a year earlier.

## Why it matters for markets

Nvidia has dominated the AI GPU market for years, and investor expectations reflect continued share leadership. Any credible signs of customer diversification can:

- pressure Nvidia’s valuation multiple,

- boost sentiment around AMD’s accelerator roadmap,

- shift attention toward the broader AI infrastructure stack (networking, switching, interconnect).

Arista’s comments also highlight a second-order market theme: Nvidia has been building more of its own networking technology, potentially reducing the addressable market for third-party networking suppliers.

## The bigger picture

- Nvidia is still described as holding roughly **90%** share of AI chips.

- AMD and hyperscaler in-house silicon (including Google’s TPUs) remain the main challengers.

- Networking and interconnect decisions are increasingly strategic as AI clusters scale.

## What to watch next

- Hyperscaler capex guidance and AI buildout commentary

- AMD’s accelerator adoption signals in enterprise and cloud

- Supplier read-throughs from networking and data-center names

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Source: CNBC (link below)