China's electric car race is becoming more about chip prowess as companies focus on tech

Nvidia remains a leader in the automotive semiconductor market, benefiting from ongoing partnerships and growing revenue despite increased competition from Chinese manufacturers developing their own chips. However, as more automakers opt for in-house solutions, Nvidia's market share could face pressure in the future.

Nio and Xpeng are poised to gain significant competitive advantages with their self-developed chips, allowing customization and reduced supply chain risks. This move should positively impact their valuation and market share in the rapidly growing EV sector.

Xpeng's strategic partnership with Nvidia may continue to provide stability as they develop their in-house technology, allowing them to carve out a niche in the competitive EV landscape while retaining ties with a leading chip maker.