Jensen Huang of Nvidia and Lisa Su of AMD, two leading AI chip companies, share a surprising connection – they are distant cousins. This revelation highlights the close-knit nature of the tech industry and the remarkable achievements of these two tech leaders.
Nvidia’s stock is trading higher after reports surfaced that SoftBank is turning to TSMC for AI chip production instead of Intel. This decision comes after Intel failed to meet SoftBank’s demands for volume and speed, potentially due to its financial struggles. While TSMC’s high demand may pose challenges, SoftBank remains dedicated to its AI ambitions and is exploring partnerships with Google and Meta for expertise and resources. Despite its recent selloff, Nvidia’s valuation remains attractive amidst the growing AI frenzy.
Taiwan Semiconductor Manufacturing Co (TSM), a leading chip manufacturer, is grappling with a severe workforce shortage despite record sales fueled by AI chip demand. The global chip industry faces a growing need for skilled engineers and technicians, with a projected shortage of up to 146,000 workers in the U.S. by 2029. Geopolitical tensions, demographic challenges, and declining student enrollment in higher education contribute to this crisis. While the stock has experienced significant growth in the past year, analysts believe it has further upside potential.
China is making strides towards self-sufficiency in AI chips, driven by US export restrictions. Despite progress in developing domestic chip-making tools, challenges remain, particularly in lithography. This article explores China’s advancements, the remaining hurdles, and the implications for the global semiconductor landscape.
NEO Semiconductor, a leading developer of innovative 3D memory technologies, will showcase its groundbreaking 3D X-AI technology at FMS 2024. This technology, based on NEO’s award-winning 3D X-DRAM, simulates artificial neural networks in 3D memory, significantly enhancing AI chip performance, power efficiency, and cost effectiveness.
Nvidia CEO Jensen Huang’s compensation surged 60% to $34.2 million in the fiscal year, driven by the strong demand for the company’s AI chips.
TSMC’s recent announcements have raised questions about Intel’s claims of chip superiority. TSMC’s new A16 chip fabrication process and backside power supply technology surpass expectations, driven by demand from AI chip companies. Intel’s similar technology, 14A, may face competition as analysts debate its effectiveness. However, both TSMC and Intel’s technologies are still in development and must deliver on their promises.
Nvidia’s dominance in AI infrastructure is being challenged by smaller, AI-focused companies like Groq, Cerebras, and SambaNova. These companies are developing chips specifically designed for AI workloads, offering greater efficiency and performance. While Nvidia remains a leader with its full-stack ecosystem, investors should be cautious in the short-to-medium term as these competitors may disrupt the market and impact Nvidia’s valuation.
Intel’s upcoming AI chip, Gaudi 3, is expected to drive significant revenue growth for three major semiconductor companies: TSMC, Alchip, and Wistron. Morgan Stanley predicts that TSMC will produce the chips using its advanced 5-nanometer process, while Alchip will provide design services and Wistron will supply the baseboards. The financial institution forecasts shipments of 300-400k units by 2025, generating up to $3 billion for Intel. TSMC and Alchip are viewed as long-term winners in the AI semiconductor demand. The news has positive implications for Intel’s stock, which has been consolidating in recent months.
Despite a US ban on selling advanced AI chips to China, Reuters reports that 10 Chinese government-linked entities have acquired Nvidia chips through resellers. The chips were embedded in server products from Super Micro Computer, Dell Technologies, and Gigabyte Technology. The report raises concerns about the effectiveness of US export restrictions and the potential for China to develop its own AI capabilities.
