Nvidia ‘should have at least 90%’ of AI chip market with AMD on its heels – MarketWatch
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” : ‘int.’; const loginBaseUrl = LOGIN_URL[pageSiteProduct]; const loginUrl = `https://${loginUrlPrefix}${loginBaseUrl}/google-login`; const targetUrl = new URL(window.location.href); targetUrl.searchParams.set(‘isGaa’, true); fetch(registerEndpoint, { method: ‘POST’, body: JSON.stringify({ id_token: credential?.credential, displayContextId: ‘SOCIAL_CONNECT’, returnUrl: window.location.href.split(‘?’)[0], editionId: `${EDITION_ID[pageSiteProduct]}`, registrationSource: `${REGISTRATION_SOURCE[pageSiteProduct]}` }), headers: { ‘content-type’: ‘application/json’, } }) .then((response) => { if (!response.ok) { console.error(‘GoogleEA: Social Connect Invalid Status Code’); return; } return response.json(); }) .then((userState) => { if (!userState) { console.error(‘GoogleEA: Social Connect No Data’); return; } window.location.href = `${loginUrl}?target=${encodeURIComponent(targetUrl)}`; }) .catch((err) => { console.error(`GoogleEA: Social Connect Err: ${err}`); }); } }; })() ]]]]]]]]>]]]]]]>]]]]>]]>
The Ratings Game
Last Updated: July 11, 2023 at 7:44 a.m. ET First Published: July 10, 2023 at 12:50 p.m. ET
AMD’s AI positioning ‘feels like’ one in servers with Intel a decade ago, Citi analyst remarks
Is this going to be like AMD and Intel a decade ago?
Getty Images, iStockphoto
[]Nvidia Corp. stands to command “at least 90%” of market share in the AI chip market with Advanced Micro Devices Inc. poised in second place, and to one analyst, that’s reminiscent of AMD and Intel Corp. in servers a decade ago.
[]In a Monday note on AMD’s AMD, +0.36% stock, Citi Research analyst Christopher Danely said a third-party assessment of AMD’s and Nvidia’s NVDA, -0.76% previous generation AI chips — the MI250 and the A100, respectively — found AMD’s hardware was about 80% as fast as Nvidia’s.
[]Read: AMD launches new data-center AI chips, software to go up against Nvidia and Intel
[]“We expect a similar advantage of Nvidia’s H100 vs AMD’s MI300 and we continue to expect Nvidia to have a substantial advantage in AI performance and share versus AMD going forward given superior speed and ecosystem,” Danely said in maintaining his neutral rating and $120 price target on AMD.
[]Nvidia shares have rallied 186% in 2023 on the promise of cashing in big on artificial intelligence models like Microsoft Corp. MSFT, -1.60% -backed OpenAI’s ChatGPT, with shares of AMD close behind with a 72% gain.
[]Both Nvidia and AMD have launched new AI chips this year, Nvidia in March and AMD earlier in the month.
[]“We expect Nvidia to have at least 90% share of AI graphics going forward as the scenario is reminiscent of Intel INTC, +2.79% vs AMD ten years ago when Intel had better performance and ecosystem and over 90% share,” the Citi analyst said.
[]Read: Nvidia and AMD shares fall on report of new U.S. ban on AI chip exports to China
[]Both Nvidia and AMD shares were down more than 1% Monday as the PHLX Semiconductor Index SOX, +2.06% rose more than 1%. In comparison, the S&P 500 index SPX, +0.24% was flat and the tech-heavy Nasdaq Composite Index COMP, +0.18% was down 0.3%.
Tesla’s Model 3 is the best-selling used EV so far this year, followed by the Nissan Leaf, according to Carvana
[]Wallace Witkowski came to MarketWatch from the Associated Press in New York, where he covered the business of Big Pharma, after covering FDA regulation of many of the same companies, as well as medical devices, in the Washington, D.C., area. Based in San Francisco, his current focus is on the more exciting world of semiconductors, videogames and cybersecurity, when he’s not churning out earnings coverage. Follow him on Twitter at: @wmwitkowski.
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