Nvidia's Success Will Carry Some Chip Stocks But Not Intel and AMD
However, Nvidia’s current wave will not lift all boats as technology in the industry moves from CPU to GPU processing. Intel $Intel(INTC.US$ was the dominant player in CPUs with AMD $Advanced Micro Devices(AMD.US$ as its main rival. Nvidia is the market leader in GPU technology and its recent growth is driven by the rush to embrace AI technologies.
“The flashpoint was generative AI,” Huang told CNBC. “We know that CPU scaling has slowed, we know that accelerated computing is the path forward, and then the killer app showed up.”
Nvidia also reported a record for its data center revenue and the company said that CPUs will also be left behind in that area.
It may not be all bad news for INTC and AMD. $Advanced Micro Devices(AMD.US$
"Growth in AI demand could yield greater CPU requirements and/or eventually create opportunity for either vendor to gain some future AI silicon share. At the same time, we continue to see heightened AI investment as likely cannibalizing standard data center server demand in the near-term," Wedbush analysts wrote.
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