YF Reports: AI Chip Wars: Nvidia, Intel, Qualcomm, & AMD

This week, business leaders in the chip industry gathered at the COMPUTEX Conference in Tapei, Taiwan; with the stated purpose of showing off their company's latest products and developments. Current industry frontrunner Nvidia (NVDA) unveiled its most impressive next-generation AI chip, named Rubin. Meanwhile, AMD (AMD) announced their AMD Instinct MI325X accelerator, showing how the company plans to lead the AI space in performance and memory. Intel (INTC) plans on finding its own niche in the heavily sought-after market, announcing its new Gaudi 3 AI Chips; a more affordable option for cost-conscious customers. As the AI revolution heats up, who will come out on top of the AI Chip Wars? Here is what you need to know.

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This post was written by Noah Chadwick

Video transcript

But the first trading day of June and NASDAQ features, they are in the green driven by gains that we're seeing in the chip stocks, NVIDIA and A MD moving higher this morning on new product announcements out of a tech conference in Taiwan, NVIDIA announcing its most advanced A I chip to date nickname Ruben.

Meanwhile, A MD unveiled a new A I accelerator which it plans to make available in the fourth quarter of this year as well as new mobile and laptop accessories to argue with anybody being a big winner except NVIDIA.

So far, when you consider the sheer scale of what they've been able to accomplish, you talk about data center revenue alone, the category that's seen the biggest bump from the A I boom rose 427% from a year ago in its most recent quarter.

But as you noted, we've seen those competitors making aggressive inroads.

You heard from A MD announcing their own next generation A I chips for laptops, the vowing to announce a new A I chip every year.

So in this A I battle this A I competition between A MD and NVIDIA, I estimate that A MD is capable of taking somewhere between 10% to maximum 20% of the market.

This is based on the gaming competition.

These two companies have had for some time, Intel, they are moving well past 20%.

Intel is an easier competitor than NVIDIA.

I think NVIDIA clearly is going to be a tougher competitor for A and D. You know, the market is really badly looking for a credible second source to NVIDIA.

NVIDIA is making 90% gross margins on its A I chips.

And the industry badly badly wants a credible second source on the merchant side.

But now Intel, they announced their Gowdy chip, which they say is going to come in less than what you would see from in video.

The hyper scalers are, you know, the Microsoft, the Google that they're all in on NVIDIA at this point.

This will allow for other companies outside of hyper scalers to get into generative A I A potentially lower price.

It's health care, it's individual research institutes, its automotive industries, that's where we could see Intel really shine.

I do think that you will see some broadening, right?

And now we're seeing some competition for NVIDIA that's going to play out, right?

So folks are going to try to take market share from NVIDIA.

So the relative winners and losers may change over time, but the industry should do pretty well arm uh is moving in swiftly though usually Intel A MD uh they're the launch partners for new kind of platform forms like this for Microsoft.

But if you look at what Microsoft did, they used Qualcomm chips Arm based Qualcomm chips to launch this new category of computers.

And that's a big deal.

That means that they have full faith in what Qualcomm and Arm can do.

Now, Intel launched their new chip at uh copy in Taipei A MD did as well.

You can imagine that they're just looking at Qualcomm Arm and thinking, are they gonna eat our lunch?