Stacy Rasgon on NVIDIA’s Market Position and Future
Yesterday, AB Bernstein analyst Stacy Rasgon discussed NVIDIA’s current market position and future in the AI chip industry. He highlighted NVIDIA’s lead over competitors and talked about the company’s valuation and investment potential.
NVIDIA Unveils H200 Tensor Core GPU
NVIDIA Corp. unveiled its H200 Tensor Core GPU, described as “the world’s most powerful GPU for supercharging AI and HPC workloads.” This GPU represents a significant improvement over the H100, which was instrumental in training OpenAI’s GPT-4.
H200: Advancements and Competition
The H200 has 141GB of “HBM3” memory, boosting its capacity for “inference.” It has shown to produce results nearly twice as fast as the H100. Scheduled for release in the second quarter of 2024, it will compete with AMD’s MI300X GPU. The H200 is backward compatible with the H100, enabling seamless integration into existing AI infrastructures.
NVIDIA’s Future Developments
NVIDIA is planning a shift to a yearly release cycle to meet growing demand. The company is indicating a potential launch of the B100 chip, based on the new Blackwell architecture, in 2024.
Stacy Rasgon’s Analysis
Rasgon emphasized NVIDIA’s dominant position in the AI chip market. He noted NVIDIA’s accelerated progression and their upcoming launch of their next-generation architecture, Blackwell, in the second half of next year.
Rasgon argued that NVIDIA is relatively undervalued when compared to competitors like AMD. He suggested that on a valuation basis, NVIDIA’s stock is cheaper than it has been for a long time, potentially even more so than AMD.
Hot Take: Future Outlook and Sustainability
Rasgon acknowledged the rapid growth in NVIDIA’s earnings but expressed caution about its sustainability. However, he seemed optimistic about NVIDIA’s prospects over the next five to ten years.
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