Nvidia's Dominance Slowly Crumbling, Here's Why

Jakarta, CNBC Indonesia — Nvidia’s era of dominance in the AI world is beginning to decline sharply, following a long streak of success.

Nvidia is known as the world’s leading chip company. The rapid development of AI further boosted the company’s success.

Unfortunately, that success is starting to fade. Among other things, Bloomberg reported that the company’s share price has fallen 15% since its peak in May.

Nvidia’s valuation is also cheaper than the S&P average. Investors are also paying less for Nvidia’s projected earnings compared with other American companies, as quoted by TechCrunch on Friday (10/7/2026).

In addition, the era when chips were scarce has finally come to an end. Chip rental prices are reported to have plummeted after reaching US$3.20 per hour last May.

While Nvidia is declining, its competitors are experiencing the opposite. The value of companies such as Micron has continued to rise, nearly tripling.

Companies such as Google, Amazon, Microsoft and OpenAI are trying to reduce their dependence on AI chips. They have released their own custom processors.

These in-house chips are indeed not as good as Nvidia’s models. However, they can lower computing costs, and that means a setback for Nvidia.

“More and more GPU and accelerator players are entering the market. Everyone wants to make their own silicon, but nobody makes their own DRAM,” explained Wayne Nelms, CTO and co-founder of Ornn.

“Until there is a major technological breakthrough in HBM (high-bandwidth memory), a shift in supply and demand, or someone new entering the memory market, I think things will stay the same,” he added.