Nvidia Corp (NASDAQ: NVDA) peers have struggled to gain traction in the generative AI chip war as the former grew in leaps and bounds.
Advanced Micro Devices, Inc (NASDAQ: AMD) failed to point to any potential customers for its new AI chip it launched this week, named the MI300X, which it claimed will top Nvidia’s flagship H100 on several measures, Financial Times reports.
AMD also does not propose to ramp up production of the new chip until the final quarter of this year.
By the time AMD’s new chip launches in the first half of next year, Nvidia’s H100 will have been in the market for 18 months, giving it a considerable lead, said Stacy Rasgon, a Bernstein analyst.
“Nvidia is free and clear in this round” of the chip wars that have broken out around AI, added Patrick Moorhead of Moor Insights & Strategy.
The combined stock market value of AMD, Broadcom Inc (NASDAQ: AVGO), and Marvell Technology, Inc (NASDAQ:MRVL) jumped by $99 billion, or 20%, in the two days after Nvidia’s sales forecast in May. But their AI-related sales are not likely to come from the market dominated by Nvidia.
The processors used to train and apply large AI models are getting the most significant surge in demand and generating the most stock market enthusiasm.
As chipmakers struggle to compete with Nvidia in the most advanced AI chips, companies like AMD and Intel Corp (NASDAQ:INTC) bet on an evolution in the generative AI market to drive demand for other processors.
The rapidly changing demands on data centers caused by the surge in services like the ChatGPT has left chipmakers struggling. Rivals eyeing a bite out of Nvidia’s surging AI business face an equally enormous challenge when it comes to software.
Rasgon expects a decade before rivals can match Nvidia’s software, by which Nvidia will still be moving fast to increase its lead. For now, the booming market for chips able to handle generative AI belongs to Nvidia, as per Moorhead.
Price Actions: NVDA shares traded lower by 0.04% at $429.79 the last check Thursday.
Image by Nana Dua from Pixabay