Competition against leading AI chipmaker Nvidia (NVDA) is ramping up, with its stock still eyeing a 66% upside according to analysts. Recently, ChatGPT developer OpenAI announced it is setting in motion plans to develop its own AI chips. The move would see it take on the AI chipmaker as it looks to lessen reliance on Nvidia. However, Nvidia now faces competition from Groq, an American chipmaker, that recently received a $1.5 billion commitment from Saudi Arabia.

Saudi Arabia is one of several countries looking to jump into the ongoing AI revolution with this latest investment. Groq was founded by ex-Google employee and creator of the TPU Jonathan Ross. The Silicon Valley company is known for producing inference chips that optimize speed and execute commands from pre-trained models. Groq’s Language Processing Unit (LPU) makes it a worthy competitor to Nvidia’s dominance according to some analysts.

Nvidia has seen competition grow over the last few months from several AI companies, domestic and foreign. While AMD is another US AI developer looking to rebound in 2025, China’s DeepSeekAI also unleashed new developments in January that shook up the tech stock market. Nvidia (NVDA) stock was one of those, as the company lost almost 600B in value on that day.

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Nvidia currently dominates the AI market with a share of about 80%. In the last calendar year, its stock is up 85%, and it had a massive 2024 in terms of revenue. However, the artificial intelligence race has been heating up in the past week. Besides AI-focused companies, other big public tech companies like Microsoft and Apple have been making advancements as well following Nvidia’s period of dominance last year.

Despite the increase in competition, Nvidia stock is performing strong. In the last 5 days, shares are up 12%. The company will report its Q1 2025 earnings on February 26. While the Santa Clara, California group’s shares are up nearly 87% from a year ago, they’ve broken even this so far year. There is still an expectation that the stock will jump considerably following positive earnings. Wall Street analysts expect Nvidia to surpass its numbers last quarter, and perhaps even outperform expectations. It remains unclear how the increase in competition will affect Q1 2025 for Nvidia. However, if the earnings come in beating expectations, that sign of resilience will certainly drive the stock higher by as high as 66%.