Bending Metal: The Changing Server Business
Processors only make up ~20% of the cost of a server. We take a look at the business behind the rest of the bill of materials.
Processors only make up ~20% of the cost of a server. We take a look at the business behind the rest of the bill of materials.
Qualcomm remains a leader in connectivity, and as the need for compute at the edge (including AI) grows, the company’s connectivity products could spark a new path to growth.
We long held the belief that there is a strong case for greater Deep Tech venture investing. The rise of machine learning and AI only deepens our conviction on what is likely to be a generational investing opportunity.
Nvidia has immense momentum, but its position is not unassailable.
We need to stop thinking about Intel as a company seeking to recapture its past glory. Those days are over. Instead, we need to evaluate the company where it stands today. And on that metric it still has challenges, but also brings consdierable assets.
As challenging as the PC market will be for Qualcomm, the company has made major strides in building up its software capabilities. Readying it not only to enter PCs, but also preparing it for whatever AI will bring to the edge.
We got pretty close guessing Intel Foundry’s numbers. And while the company is moving in the right direction, the scale of the problem and the timeline of the solution are so big it is hard to get too excited about the company’s turnaround.
Recently de-cloaked start-up Playtron has creating a new OS targeted at portable gaming consoles that could be a critical bridge in brining more gamers into the market for PC-quality games.
Nvidia likes to talk about AI Factories, independent GPU-centric cloud providers, but these look a lot like PaaS providers of old, and they could trip up the company once GPU supply catches up with demand.
The rise of AI compute is poised to reshape the economics of the data center. That may be as simple as Nvidia displacing Intel, but it could also lead to much wider, systematic change.