NVDA shares are trading lower in the premarket following reports that DeepSeek is developing its own inference chips to reduce reliance on Nvidia and Huawei. This move reflects a broader trend of custom silicon development by major players including Google, Amazon, Anthropic, and a partnership between Cerebras, Broadcom, and OpenAI. While these competitive shifts raise market concerns regarding Nvidia's long-term gross margins, the author notes there is currently no evidence of a margin peak.