Nvidia’s GTC conference, which takes place on 17 March, is expected to showcase new technology from the chip company, particularly its Blackwell chip. Investors will focus on what the chip looks like, when it will debut, and its potential pricing. Matt Bryson, SVP of Equity Research for Hardware at Wedbush Securities, says the Vibe from the conference may be positive although how it affects competitors is unclear. Bryson suggests that demand for more than just Nvidia is possible, with AMD’s current ramp in revenue making gains until 2024. Cus, a startup showing off its wafer-scale chip, may also triumph in its niche. However, Nvidia’s efforts in bringing its products to market faster is helping it to maintain its share lead.
Intel was slated to receive $2.5bn from the Pentagon, but a Bloomberg report suggested the Pentagon has withdrawn its funding. The overall US funding of chip makers is good news for Intel, and failing to get the full allocation would not change the story. Intel’s scaling out in the US will depend on getting its foundry process right. Meanwhile, Bryson says that Nvidia has created a competitive moat and done a lot to maintain market leadership, making it difficult for competitors to take market share.
As the AI market grows explosively, with predicted TAMs of $400bn in 2027, even if Nvidia loses share, it will maintain an accelerated growth rate. Nvidia funding start-ups and developing programs such as Cuda in universities and funding start-ups have made it challenging for competitors to keep pace. Memory space is expected to be a significant opportunity, with storage requirements critical for training models. Memory vendors have been underinvestigated, but it is thought that the commodities, M-GRANDON and WD, could do very well.
🤔 What we can expect from the conference
The GTC conference will demonstrate Nvidia’s new technology, with the Blackwell chip attracting particular attention. Investors will look to learn more about the chip’s look, debut, and pricing. Bryson suggests the conference will have a positive vibe.
👨💼 Nvidia’s competitors
Though AMD may make gains until 2024, there is demand for more than just Nvidia. Although Nvidia is maintaining its share lead, and its efforts to bring its products to the market faster are helping.
💰 Intel and funding
Intel was poised to receive $2.5bn from the Pentagon, but that funding has been withdrawn. Even so, this does not change the overall US funding of chip makers which has been good news for Intel. Intel’s scale-out in the US will depend on getting its foundry process right.
👨💼 Nvidia and maintaining market leadership
Nvidia funding start-ups and developing programs such as Cuda in universities and funding start-ups have made it challenging for competitors to keep pace.
💾 Memory space and its significant opportunity
Memory space is expected to be a significant opportunity, with storage requirements critical for training models. Memory vendors have been underinvestigated, but it is thought that the commodities, M-GRANDON and WD, could do very well.
🔮 Predicting surprises in the chip industry
Bryson suggests that there is a greater opportunity in ancillary infrastructure to support AI, particularly in the memory space which is currently underinvestigated.
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