AI chip investment surge

What happened: Tech giants are investing heavily in developing their own AI chips. DeepSeek, aiming to reduce reliance on Nvidia and Huawei, is developing an in-house AI chip. Amazon, under Panos Panay, is designing AI chips for its Echo and Fire TV devices. Hyperscalers, like these companies, are increasingly investing in proprietary chip technology.

Market impact: This narrative drives a shift in the semiconductor industry, affecting key players like Nvidia and Broadcom. It could lead to reduced demand for their AI chips, as tech giants aim to control more of their tech stack. This may result in valuation repricing for these semiconductor stocks.

What to watch next: Keep an eye on DeepSeek's progress with its AI chip development. Amazon's earnings call, scheduled for July 28, 2026, could provide more insights into their AI chip strategy. Additionally, monitor Nvidia's earnings on August 17, 2026, for any signs of reduced demand from tech giants.