To The Moon

The AI chip wars are heating up, and it feels like every month there’s a new contender stepping into the ring to challenge Nvidia’s throne. Amazon just dropped its game-changer: an in-house AI chip that the company claims is “cost-effective” compared to Nvidia’s offerings. Meanwhile, Marvell has made a bold move by acquiring Celestial AI, positioning itself as a contender in next-generation optical interconnect technology. Google isn’t sitting idly either—its TPUs have already carved out a niche, and Broadcom’s ASIC chips add another layer to this increasingly crowded field.

Broadcom (AVGO)

Alphabet (GOOGL)

Marvell Technology (MRVL)

Amazon.com (AMZN)

Personally, I’m bearish on Nvidia at the moment, though I’ll admit—I often get it wrong when it comes to AI or tech-related stocks. On the surface, more competition might seem like a bad omen for Nvidia; after all, the market leader could lose market share as Amazon, Marvell, Google, and others chase the same AI goldmine. But there’s another way to see it: competition can also be a powerful catalyst for innovation. The pressure to stay ahead could push Nvidia to release even more efficient and powerful chips, benefiting the tech ecosystem—and perhaps its shareholders.

NVIDIA (NVDA)

At around $180, Nvidia’s stock has seen a bit of volatility, leaving investors with a tricky decision: buy, sell, or sit tight? As I see it, the price is fair but not necessarily irresistible. I’m more focused on hedges and alternative plays. For instance, I’ve been closely watching SOXS, the inverse semiconductor ETF, which is near its 52-week low. I actually bought SOXS at $3.13 on Webull and sold in pre-market today at $3.22—a modest but satisfying swing.

Direxion Daily Semiconductors Bear 3x Shares (SOXS)

What’s fascinating about this period is that we’re seeing a market that rewards bold technological bets but punishes complacency. Nvidia isn’t invincible, but its moat isn’t disappearing overnight. Meanwhile, the arrival of competitors like Amazon and Marvell could either eat into margins or, paradoxically, spur faster innovation that keeps Nvidia—and the industry—moving forward.

So where does that leave a cautious, slightly bearish investor like me? Watching. Learning. Swiping small wins where I can. Nvidia at $180 isn’t screaming “buy” for me, but the unfolding AI chip wars are a spectacle I can’t afford to ignore. And who knows—tomorrow’s announcement from Amazon or Google could shift everything.

In short: more competition is complicated. It’s a risk, yes, but also a potential engine for innovation. For now, I’m leaning bearish on Nvidia and keeping a close eye on every development in the AI chip battlefield. The war is just beginning, and the price tag of $180 is only the opening salvo.