The AI race where Nvidia stands

Asif • 2024-11-10 • US Equity • Public •

US:NVDA US:AMD US:INTC US:TSM

As the AI chip demand rising major companies like TSMC and Nvidia have struggled to meet demand for AI chips. TSMC management has confirmed plans to double advanced chip-packaging capacity.

In an interview NVIDIA chief Jensen Huang said. “I’m hoping that NVIDIA is someday biologically bigger, but also, from an artificial intelligence perspective, much, much bigger,” said Huang, saying that NVIDIA already has AI chip designers and AI software engineers.

He sees chip design as the most important area for AI development, saying that AI chip designers could tackle some of the most complex challenges in the field. Huang said that NVIDIA currently works with engineers from Synopsys and Cadence. However, he added that in the future, NVIDIA will work with AI engineers trained by them.

Nvidia is benefiting from the marketwide rally following Donald Trump’s victory in the U.S. presidential election. Expectations for reduced corporate taxes could be a boost for the company alongside hopes of looser regulation in the AI and energy sectors, which might promote further data-center expansion.

Nvidia clocking in $1 billion per quarter revenue from AI chips while Intel says it won’t even meet its more modest $500 million goal for its Gaudi AI accelerator this year. While last week AMD forecast fourth-quarter revenue just shy of estimates and raised its artificial intelligence chip sales forecast to $5 billion for 2024.

In another development TSMC will suspend production of their most advanced artificial intelligence chips in China to comply US restrictions on China. TSMC told Chinese customers it would no longer manufacture AI chips at advanced process nodes of 7 nanometres or smaller as of this coming Monday.

What’s your take on AI chip makers? Which company will you bet on?

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Kommentarer (3)

Magdalena • 2024-11-10

Donald Trump victory means probably less regulations on AI. Does it increase the risk or help the investor to manage it? In terms of the company I would pick, probably Apple (AAPL), as it is one of the best AI companies to watch. Apple shares have gained 16% in 2024 boosted by its project initiative named ACDC (Apple Chips in Data Center). Will AI Apple features in iPhone 16 models stimulate a major upgrade cycle remains to be seen.

Johan • 2024-11-10

The AI chip race isn't just about current revenue. It's about future infrastructure. While Nvidia leads today, TSMC's manufacturing expansion and AMD's aggressive push into AI chips suggest we're entering a more competitive era. The geopolitical dimension, with TSMC halting advanced AI chip production in China, adds another layer of complexity. Smart money might consider splitting bets between Nvidia's established dominance and AMD's growth potential, especially given the broader tech rally following recent political developments.

Quentin • 2024-11-11

Honestly, the AI chip scene is getting wild! Nvidia’s killing it right now with record-breaking revenue thanks to their AI chips, and they’ve got this major lead. But AMD is no slouch either—they’re pushing hard, aiming for a cool $5 billion in AI chip sales next year, so there’s some real momentum there. And TSMC is expanding its chip-packaging capacity, though they’ve had to pump the brakes on some projects in China due to U.S. restrictions.

If I had to choose, I’d probably go with a mix—Nvidia’s solid if you want stability, AMD’s the one for growth potential, and TSMC has that manufacturing muscle (with a dash of geopolitical drama). Feels like a smart spread could balance things out nicely in this fast-evolving market.

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