Nvidia stock was edging down early on Friday with the chip maker’s shares still stuck just below record highs ahead of its coming earnings. Nvidia shares were down 0.5% at $146.01 in premarket trading.

At least five research firms raised their price targets on Nvidia stock on Thursday ahead of the AI chipmaker's fiscal Q3 earnings report.

To that end, Nvidia bears frequently highlight custom AI chips from big technology companies like Amazon ( AMZN 2.48%) and Alphabet ( GOOGL -1.51%) ( GOOG -1.54%) as cause for alarm. While both companies have designed custom silicon for their data centers, recent commentary should put Nvidia investors at ease.

Shares of Applied Digital surged in extended trading Thursday after Nvidia reported a stake in the company. Nvidia held a roughly 3% stake in Applied Digital as of Sept. 30, according to a filing with the Securities and Exchange Commission.

Nvidia shares gain as ASML and Foxconn both say they still see strong signs of demand for artificial-intelligence semiconductors.