<div id="readability-page-1"><div id="article-body-4116533"><div><p>Chip giant NVIDIA (NVDA, Financial) is facing challenges in maintaining its status as the prime investment choice in the AI boom. RBC Capital Markets analyst Srini Pajjuri views this as an ideal opportunity to invest in NVIDIA. Despite benefiting from TSMC's strong earnings report, NVIDIA's prominence in the AI investment narrative is waning, with attention shifting to memory-related sectors.</p><p>Market concerns revolve around NVIDIA potentially losing market share to Google's in-house TPU and the upcoming chips from Advanced Micro Devices (AMD). NVIDIA's stock has shown a consolidating trend over the past three months. However, Pajjuri is optimistic about NVIDIA regaining its growth momentum, initiating coverage with an &#34;outperform&#34; rating and a target price of $240.</p><p>Pajjuri cites robust capital expenditure among major cloud service providers as a contributory factor. Although the AI accelerator market share for NVIDIA might decline from 80% to 70% by 2027, he doesn't perceive this as significant. While custom ASIC chips and AMD's products could gain share due to supply chain diversification, NVIDIA's performance lead and comprehensive end-to-end solutions mitigate these risks. NVIDIA's Rubin system production and future flexibility with Groq enhance its competitive edge.</p></div><p><em>This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to <span>[email protected]</span>.</em></p></div></div>

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<p>NVIDIA (NVDA) is facing increased competition in the AI market, with analysts suggesting it may be a good time to invest. RBC Capital Markets' Srini Pajjuri has initiated coverage with an "outperform" rating and a target price of $240, despite concerns over potential market share loss to competitors like Google and AMD. Pajjuri believes NVIDIA's strong position and comprehensive solutions will help it maintain growth, even as its AI accelerator market share may decline from 80% to 70% by 2027. The stock has shown consolidation over the past three months, but optimism remains for future performance.</p>

- NVIDIA is facing pressure to maintain its position as the leading investment choice in the AI sector, as market attention shifts to memory-related sectors.  
- Analyst Srini Pajjuri of RBC Capital Markets sees this as a prime investment opportunity, initiating coverage with an "outperform" rating and a target price of $240, citing robust capital expenditures from cloud providers.  
- While NVIDIA's market share in the AI accelerator space may decrease, the company’s performance advantages and comprehensive solutions may help mitigate competitive risks.

NVIDIA (NVDA) Faces Competition in AI Market as Analysts See Buying Opportunity