Nvidia‘s (NVDA 1.44%) business has been booming since the start of the artificial intelligence (AI) revolution. This is because the company sells the key element needed to power AI: the AI chip. And Nvidia’s chips just so happen to be the fastest around, making them the go-to choice for major tech companies aiming to win the AI race.

These chips are known as graphics processing units (GPUs), and they power some of the most crucial AI tasks, such as the training that gives large language models (LLMs) knowledge and the inferencing that helps them think through and solve complex problems.

All of this has generated enormous growth for Nvidia, with revenue climbing to record and multi-billion-dollar levels. The company has also reported billions of dollars in profit thanks to its market leadership. And the stock price has followed, delivering a 1,200% increase over the past five years.

Still, some investors have expressed concern about whether Nvidia may hold onto this top position. Well, here’s some good news: Customers Alphabet (GOOG 0.06%) (GOOGL 0.08%) and Amazon (AMZN 2.47%) just said something that may eliminate Nvidia’s biggest risk.

Image source: Getty Images.

Nvidia isn’t alone

So, first of all, let’s start by considering this risk, which begins with the idea that Nvidia isn’t alone in the AI space. The company faces competition from other chip designers like Advanced Micro Devices and Broadcom. These players offer customers high-quality options that come with a smaller price tag than Nvidia’s latest innovations, so the idea is they could chip away (excuse the pun) at the company’s market share.

On top of this, some of Nvidia’s own customers, from Alphabet and Amazon to Meta Platforms, have developed their own chips. And the concern here is that they will shift to their own products and rely less and less on Nvidia.

So, Nvidia’s biggest risk is that other chip designers and its own customers will buy fewer chips and supporting systems from the company in the coming years — and that would clearly hurt earnings prospects and stock performance.

Now, let’s consider the words from executives at Alphabet and Amazon that eliminate this major risk.

These comments come at the time of a big announcement: The upcoming launch of Nvidia’s Rubin platform. Nvidia, at CES last week, said the system is in full production and is set to roll out in the second half of this year. That fulfills Nvidia’s pledge to innovate and upgrade its chips on an annual basis.

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Demand for Nvidia GPUs

Against this backdrop, Alphabet chief Sundar Pichai said: “To meet the substantial customer demand we see for Nvidia GPUs, we are focused on providing the best possible environment for their hardware on Google Cloud.”

Matt Garman, chief of Amazon Web Services (AWS), said: “The Nvidia Rubin platform on AWS represents our continued commitment to delivering cutting-edge AI infrastructure that gives customers unmatched choice and flexibility.”

Both executives also emphasized their long-established relationships with Nvidia.

These comments don’t suggest a shift away from reliance on Nvidia and instead a will to continue significant work with the chip leader.

This doesn’t mean players like Alphabet and Amazon won’t use their own chips or those of Nvidia rivals. But, considering their comments, it’s unlikely those moves will weigh on their orders for Nvidia products.

Nvidia predicts that AI infrastructure spending may reach $4 trillion by the end of the decade, and investment patterns we’ve seen from big AI players like Alphabet and Meta suggest this is very possible. This means there is plenty of room for Nvidia and its rivals to see orders for GPUs explode higher — and remain at high levels as the AI story progresses.

What does this mean for you as an investor? Though Nvidia’s earnings and stock price have soared in recent years, this doesn’t mean the potential for more growth is dwindling. As the AI boom marches on, GPUs and related products are in high demand, and customers recognize the strength of Nvidia’s products — this should lead to gains in earnings and the stock price in the years to come. And that’s great news for investors who buy Nvidia stock today.