Nvidia’s massive earnings surprises have attracted a lot of attention online, not all of it positive. Sifting through the noise, the company is backed by real demand. And while its earnings will eventually hit an air pocket, it looks very strong long term
The three big questions for the AI semis market:
1) Is AI additive to the TAM?
2) How will the inference market shape up?
3) Can Nvidia’s dominance be challenged?
GPUs are the leading semis option for most AI systems today, but we think other chips will play important roles down the path including CPUs and possibly even FPGAs.
We attended AMD’s analyst event this week. The company has a solid product portfolio, but investors hoped to see more progress on AI. AMD makes the case that customers want an alternative to Nvidia, but Nvidia has 11 billion counter-arguments to that.
AI may wipe out humanity someday, but right now it is doing wonders for semis stocks.
We would love to see more semis start-ups that take a ‘software first’ or at least ‘software really early’ approach.