News Nvidia, AMD Stocks Up Sharply as AI Drives Chip Demand

[Admin]

Nvidia shares are up sharply in the wake of better than expected results, while AMD rises strongly in sympathy.

Nvidia, AMD Stocks Up Sharply as AI Drives Chip Demand : Read more

 

[edzieba]

The reason for the Nvidia boom is little or nothing to do with gaming graphics cards, so popular with which PC enthusiasts and gamers. Instead, the rocket fuel here is Nvidia's pivotal perceived role in accelerating the AI revolution.

That, and the projected $11bn quarterly revenues for Q2 2023. Or pulling in during one quarter what they pulled for the entirety of 2020. Even more optimistic than the recent wafer purchase would suggest.

For an extra 10,000 wafers, that's on the order of 640,000 H100 dies (minus defects that cannot be binned out). Assuming an average of $20k volume pricing per card, and a very conservative 50% yield, that's on the order of $6.4bn in revenue above what was previously expected. Split across 4 quarters, that'd be something like a 50% uptick in datacentre revenue.

 

[InvalidError]

Question is: how long is Nvidia's AI gold rush going to last until ASICs dedicated to specific algorithms steal its lunch just like ASICs did with most crypto-mining?

 

[SlitheryDee62]

It feels like nvidia has been laying track for this for much longer than AMD. They've really done a remarkable job predicting where the industry was going. It seems right now that they are reaping the rewards.

 

[magbarn]

Doesn't this pretty much mean Nvidia has no reason this gen to lower GPU prices as they're getting fat revenue from AI chip sales? Might be an opportunity for AMD, but they like to grab defeat from the jaws of victory.

 

[2+2]

At this point in Nvidia's life,
PC graphics cars are

Charity.

So we should be grateful for
any bone they give us.