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Nvidia (NVDA) and AMD (AMD) are two of the best buyers in the sector

It's an exciting time to be a semiconductor company. Use for chips to grow, from connected cars to connected home speakers, while the process of making chips becomes harder and harder, making things more valuable. There will be music for the ears of proprietors of shares in two of the best companies in the industry, Nvidia (NVDA) and Advanced Micro Devices (AMD). As the only two independent developers of data slots that can handle today's artificial intelligence craze, graphics processing unit or GPU chip, these two are in the Catbird seat. There is endless demand for things, as more and more problems in data processing are transformed as GPU issues. There has been a sharp decline for both stocks just like the rest of the market. Nvidia is below 22% this year and 45% in the last three months. Advanced micro-units, which fought early in the year, managed to double in the past 1 2 months, but the shares fell by a third in the same three month period until today. Both shares are expensive, but a lot less than they were not long ago. Nvidia is the more reasonable bet at this time, trading at 23 times next year estimated 6.59 dollars per share in net profit, compared with 31 times for AMD. The trends that define these two companies are deeper than current stock market uncertainties or other issues that are constantly pursuing their shares, the fact that they make money on the insecure fluctuations of the encryption…

It’s an exciting time to be a semiconductor company. Use for chips to grow, from connected cars to connected home speakers, while the process of making chips becomes harder and harder, making things more valuable.

There will be music for the ears of proprietors of shares in two of the best companies in the industry, Nvidia (NVDA) and Advanced Micro Devices (AMD).

As the only two independent developers of data slots that can handle today’s artificial intelligence craze, graphics processing unit or GPU chip, these two are in the Catbird seat. There is endless demand for things, as more and more problems in data processing are transformed as GPU issues.

There has been a sharp decline for both stocks just like the rest of the market. Nvidia is below 22% this year and 45% in the last three months. Advanced micro-units, which fought early in the year, managed to double in the past 1

2 months, but the shares fell by a third in the same three month period until today.

Both shares are expensive, but a lot less than they were not long ago. Nvidia is the more reasonable bet at this time, trading at 23 times next year estimated 6.59 dollars per share in net profit, compared with 31 times for AMD.

The trends that define these two companies are deeper than current stock market uncertainties or other issues that are constantly pursuing their shares, the fact that they make money on the insecure fluctuations of the encryption market.

AI, the problem of calculating problems through vectors manipulations, has proved to be a blessing for GPU companies. Nvidia owns a certain estimate of 80% of the market to “train” neural networks.

This process involves a large number of parallel data operations that multiply vectors and matrices to find a hidden organization of connections between data points. It may be the characteristics of an image that collectively represents an object, such as computer vision. It can be the way through a series of steps to solve the Go strategy strategy.

All these treasure hunting has required heaps and heaps of Nvidia GPUs in recent years. Nvidia’s revenues are expected to increase by 22% during this fiscal year ending in January, from an increase of 25% the year before, a sharp increase from the direct downturn and the weak growth for many years until 2017. Nvidia is on a roll.

AMD has nowhere near the same appearance in AI as Nvidia has, but as the only other main supplier of a GPU chip, it simply spells the possibility for the company to be the second source. Last month, AMD announced what it expects as the world’s first GPU chips made with the smallest feature size available for chips today, seven billion feet of a meter.

AMD is a fraction of Nvidia’s size, with $ 20 billion in market value compared with 91 billion. The fact that it’s a bit AMD that makes this announcement is a significant consequence of a company close to death four years ago.

The big threat to both is that the spread of AI continues to lead to more startup companies that can completely change the computer landscape and outdated GPU. Graphcore, a Bristol launch company that has a fascinating alternative to GPI for AI computers, announced yesterday that it raised another $ 200 million from venture capitalists, with this round including contributions from Microsoft and BMW. With $ 300 million raised so far, Graphcore has real money, not playing money, ensuring its chips will get a shot when taking GPU.

There are dozens of such startups. And the lesson of Intel should give a break. Intel (INTC) spent $ 14.5 billion last year to acquire Mobileye, a promising competitor in the race to use AI for self-propelled cars. With the many homepage pages coming up for AI, it’s not clear that such a big purchase will ever pay for itself. It is difficult, in other words, for the established chip vendors to keep up with the change that AI calls for.

Just as the Intel microprocessor has disappeared in recent years of options like ARM Holdings chips, which now dominate mobile computing, and GPU, which dominates AI training, the GPU may also find itself drowning in alternatives.

In times of epic change, both Nvidia and AMD have the best leadership in business. Jensen Huang of Nvidia is a visionary who has guided the company to this moment for decades. Lisa Su is one of the most curiosities in the industry, and took AMD back from the verge of disaster to combat form.

Astute management can help both companies continue to reap the benefits of a furious market for semis that AI proliferates.

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Faela