Chip stocks moved in opposite directions after comments from a key AI networking supplier added a new datapoint to the GPU-competition narrative.

## What happened

According to CNBC, shares:

- **Nvidia (NVDA)** fell nearly **3%**

- **Advanced Micro Devices (AMD)** gained close to **1%**

The move followed remarks from **Arista Networks (ANET)** CEO Jayshree Ullal on the company’s earnings call.

## The quote driving the reaction

Ullal said that while deployments were previously “pretty much **99% Nvidia**,” Arista is now seeing about **20% to 25%** of deployments where **AMD** is becoming the preferred accelerator.

## Why it matters

Nvidia has dominated AI GPUs, and even small signs of share shift can influence:

- Forward expectations for **AI chip pricing power**

- Capital-expenditure plans among hyperscalers

- Valuation spreads between dominant and challenger names

CNBC also noted Arista’s strategic position: it provides Ethernet switching that connects AI chips together in clusters — meaning its customer mix can be a useful “read-through” for broader infrastructure trends.

## The competitive wrinkle for Arista

CNBC reported that Nvidia has increasingly built its own networking stack (e.g., Spectrum-X), which reduces reliance on third-party networking vendors. That dynamic may increase the importance of alternative partnerships and deployments (including with AMD) for suppliers in the ecosystem.

## What to watch

- Additional supplier and hyperscaler commentary on **accelerator mix**

- Any evidence of sustained AMD traction beyond pilot deployments

- Whether networking attach rates shift as Nvidia expands its in-house solutions

_Source: CNBC (link above). Topic: stock-markets._