Nvidia’s stock is down and AMD is up. The culprit may be Arista.

shares Nvidia And Advanced Micro Devices Moved in opposite directions after CEO on Friday Arista Networks He told investors that his company is seeing some distribution shifting to AMD.

Shares of Nvidia fell almost 3%, while AMD gained nearly 1%.

“A year ago it was almost 99% Nvidia, right?” “When we look at our deployments today, we’re seeing about 20%, maybe a little bit more, 20% to 25%, and we’re seeing AMD becoming the preferred accelerator choice,” Ullal said late Thursday on Arista’s earnings release when an analyst asked about the company’s work with AMD.

The stock moves weren’t dramatic, but Ullal’s comments are notable because Nvidia has dominated the market for graphics processing units (GPUs) in AI since the industry took off just over three years ago with the launch of OpenAI’s ChatGPT.

Nvidia currently owns roughly 90% of the market for AI chips, and potential challenges could also come from AMD. Googleis seeing increasing traction for tensor processing units. Nvidia is the most valuable company in the USA, with a market value exceeding $4.5 trillion. AMD is valued at approximately $335 billion following an 85% increase in its stock price over the past 12 months.

Arista’s role in the AI ​​infrastructure boom is to provide Ethernet switching technology that connects powerful chips. AMD announced late last year that it was partnering with Arista to create customized AI clusters that can be used for training and inference.

But according to Arista, much of the diversity in their distribution comes out of necessity.

Nvidia has reduced its need for Arista technology by creating its own networking technology to connect its powerful GPUs. Nvidia in October in question HE Meta And Seer One announcement that contributed to Arista’s shares falling 10% in two days was that they would be adopting the chipmaker’s networking technology into their own ecosystem.

“It’s not the end of the world, but they’re clearly being designed with the help of Nvidia, and they’re being designed to some extent, but not quite,” Ben Bajarin, an analyst who covers the chips at Creative Strategies, told CNBC via email on Friday.

Nvidia started The Spectrum-X Ethernet platform in 2023 and Arista the following year lost more than half of its value. The stock rebounded slightly last year, rising 19%, and is now up 6% in 2026.

An Nvidia spokesman declined to comment. AMD did not immediately respond to a request for comment.

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