There’s no doubt about it: AMD (AMD -3.10%) has been getting beaten by Nvidia (NVDA -2.69%) in the artificial intelligence (AI) arms race. AMD has been busy trying to close the gap, but Nvidia is still much further ahead.
AMD recently announced its acquisition of ZT Systems, another attempt to close the gap on Nvidia. Still, I don’t think AMD is the optimal choice for investors, as Nvidia still has several key advantages…..Continue reading….
Source: The Motley Fool
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Critics:
Nvidia is a software and fabless company which designs and supplies graphics processing units (GPUs), application programming interfaces (APIs) for data science and high-performance computing, as well as system on a chip units (SoCs) for the mobile computing and automotive market. Nvidia’s specialization means it is able to charge a premium for its products.
In fact, its chips, which are manufactured in Taiwan, are so unique that companies looking to build AI capabilities are complaining that there is a shortage of them. The ownership structure of Nvidia (NVDA) stock is a mix of institutional, retail and individual investors. Approximately 35.48% of the company’s stock is owned by Institutional Investors, 3.93% is owned by Insiders and 60.59% is owned by Public Companies and Individual Investors.
According to supply chain data estimates from Bloomberg, Arcuri is spot on with Microsoft being Nvidia’s largest customer. Nvidia stock fell sharply Tuesday, trading at its lowest level since late May as the market awaits Big Tech earnings and looks at potential competition in AI hardware. Nvidia shares closed down 7% at $103.73. The tech-heavy Nasdaq Composite Index dropped 1.3%.
The top individual shareholders of Nvidia are Jen-Hsun (“Jensen”) Huang, Mark A. Stevens, and Tench Coxe. The top institutional shareholders are Vanguard Group Inc., BlackRock Inc. (BLK), and FMR LLC. Nvidia stock has gained 3,776% since the start of 2019 as the company benefits from selling the main chip necessary for artificial intelligence work, minting many new multimillionaires in the process.
The main issue is that Nvidia’s graphics processing units, even its popular H100s, don’t have enough memory to handle the immense amount of video data needed to train these models, founders of AI video startups tell me. Nvidia designs and manufactures GPUs for gaming, cryptocurrency mining, and professional applications, as well as chip systems for use in vehicles, robotics, and other tools.
Today, data center processors for analytics and AI have quickly become Nvidia’s largest source of revenue, surpassing the company’s historical main business line of GPUs (graphic processing units). Nvidia Overtakes Microsoft as World’s Most Valuable Company Nvidia Overtakes Microsoft as World’s Most Valuable Company. Nvidia has become the most valuable company in the world after its market capitalization grew to $3.34 trillion, overtaking Microsoft at $3.32.
In 2023, companies like Meta, Oracle, and Microsoft signaled their interest in AMD GPUs as a more cost-effective solution and a way to avoid a potential vendor lock-in with dominant Nvidia. AMD’s Instinct MI300 series, for example, is considered a viable alternative for scientific computing and AI uses. Concerns over Nvidia’s valuation seems to be the chief reason behind recent heavy selling. Even now, Nvidia shares on an elevated forward price-to-earnings (P/E) ratio of 43.6 times.
This remains far ahead of an average of 25.5 times for S&P 500 shares. Bank of America analyst Vivek Arya noted Nvidia is one of the firm’s top “rebound” picks amid what he expects to be a comeback for semiconductors to end 2024. “Our base case remains for a [semiconductor] rebound likely in Q4 as seasonal headwinds dissipate,” Arya wrote in a note to clients.
World’s most important fuel of the AI frenzy, NVIDIA, is facing accusations of acting as a “GPU cartel” and controlling supply in the data center market, according to statements made by executives at rival chipmaker Groq and former AMD executive Scott Herkelman. Reports claiming that Nvidia (NASDAQ:NVDA) is buying Xbox from Microsoft (NASDAQ:MSFT) have been debunked as an April Fool’s Day prank from TweakTown.
The “Nvidia buys Xbox” post spread online and started trending on some social media websites. A $20,000 investment made in the semiconductor giant 10 years ago would be worth more than $3.4 million today — up by around 170 times in value. It is also worth noting that the company has taken less than a decade to turn a $20,000 investment into precisely a $1 million.
The ownership structure of Nvidia (NVDA) stock is a mix of institutional, retail and individual investors. Approximately 35.48% of the company’s stock is owned by Institutional Investors, 3.93% is owned by Insiders and 60.59% is owned by Public Companies and Individual Investors.
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