Nvidia (NVDA) shares inched down today, July 22, after FuriosaAI said it has landed LG as its first major customer.
FuriosaAI is a startup based out of Seoul, South Korea that’s committed to designing chips, which rival NVDA in terms of performance, efficiency, and cost effectiveness.
Despite today’s decline, Nvidia stock is up nearly 95% versus its year-to-date low set in early April.
Why Is FuriosaAI’s Announcement Significant for Nvidia Stock?
FuriosaAI’s most advanced artificial intelligence chip dubbed “RNGD” will power LG’s “Exaone” large-language models (LLMs), according to the startup’s press release on Tuesday.
It’s a meaningful development for NVDA investors given it signals growing enterprise confidence in alternatives to Nvidia’s GPUs.
This public endorsement from a global technology giant could accelerate adoption of non-Nvidia solutions, especially in Asia’s booming AI ecosystem.
For Nvidia, it raises competitive pressure and questions about future market share, particularly as startups like FuriosaAI gain traction with high-profile clients.
Note that the RNGD chip delivers 2.25x better performance per watt and offers a lower total cost of ownership compared to conventional graphics processing units.
Is LG Choosing FuriosaAI a Reason to Sell NVDA Shares?
Investors should note, however, that FuriosaAI’s announcement is not a big enough reason to sell Nvidia shares especially since the Korean startup is privately held and so NVDA is not really in competition with it for institutional capital.
In fact, Morgan Stanley analysts view NVDA stock as a “top idea” heading into the AI darling’s earnings print scheduled for the final week of August.
The investment firm recommends sticking with Nvidia stock despite its monster run since April as it’s “expecting the pace of revenue and EPS upside to accelerate on the earnings report, driving compelling risk reward into the quarter.”
Wall Street Has a Consensus ‘Strong Buy’ Rating on Nvidia
Nvidia stock is worth owning at current levels because other Wall Street firms continue to see it as a core holding for 2025 as well.
The consensus rating on NVDA shares remain at “strong buy” with the mean target of about $183 indicating potential upside of some 8.0% from here.
