Analysts at Citi see Nvidia continuing to maintain a 90% or so market share in the artificial intelligence GPU chip market over the next two to three years.
Nvidia stock was dropping after a recent report that OpenAI is exploring plans that could cut out the chip maker as a supplier. But there remain good reasons to stay bullish on Nvidia.
OpenAI, a leader in artificial intelligence backed by Microsoft whose launch of the ChatGPT chatbot kicked off an AI investing frenzy, is exploring making its own AI chips, Reuters reported late last Thursday, citing anonymous sources. Amid a shortage of chips to fuel AI growth, OpenAI is also considering options including working more closely with chip makers like Nvidia or diversifying its suppliers beyond the company, the report said.
“We continue to expect Nvidia to maintain ~90% share in the AI GPU market for the next 2-3 years,” analysts at Citi wrote in a note Friday. The analysts added that the Reuters report, if true, would be not so surprising—and consistent with the view that GPUs and ASICs will be needed to ramp up necessary infrastructure in AI.
“We foresee ASICs being primarily used for smaller and more specialized models and GPUs for both training and inference of larger/more complex models,” the analysts said. Nvidia stock was down 2.2% at 10:23 a.m. on Monday, underperforming both the S&P 500 and Nasdaq Composite, which were down 0.2% and 0.5%, respectively.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
1 Stock to Buy, 1 Stock to Sell This Week: JPMorgan Chase, CitigroupStocks Analysis by Investing.com (Jesse Cohen) covering: Citigroup Inc, JPMorgan Chase & Co, JP Morgan Chase & Co, Citigroup Inc. Read Investing.com (Jesse Cohen)'s latest article on Investing.com
Read more »
Microsoft reportedly working on its own AI chips that may rival Nvidia’sMicrosoft’s codename Athena is reportedly a secret project for AI chips. Reports suggest Microsoft is looking to cut its reliance on Nvidia for its costly AI push.
Read more »
This could be the next major bullish catalyst for AI darling NvidiaCEO Jensen Huang's Nvidia is set to pull forward the debut of its next-generation processor to the end of 2024, from 2025, according to Wall Street analysts.
Read more »
Nvidia cancels AI Summit in Tel Aviv following Hamas attack on IsraelNvidia canceled its AI conference in Tel Aviv next week due to safety concerns as the death toll rises in Israel and the Gaza Strip.
Read more »