Nvidia May See a Significant Opportunity From Generative AI, but Challenges Remain

Seekingalpha2023-02-21

Generative artificial intelligence, and in particular ChatGPT, has taken the investment world by storm in recent months and companies like Microsoft and Google have noticed.While some of the benefits ...

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StarGate
2023-02-21
StarGate
good info.
LimBT
2023-02-21
LimBT
Ok
MLFL
2023-02-21
MLFL
Good morning

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Vinh added that Google is likely using TPUs for Bard, based off conversations. However, the analyst noted there is not likely a \"significant operational cost advantage\" for using TPUs compared to GPUs.Earlier this month, Google (GOOG) (GOOGL) unveiled its Bard chatbot in a rushed response to the Microsoft (MSFT)-OpenAI deal, as well as an underwhelming event held in Paris showing off several AI-related updates that failed to impress analysts.In addition, there are cost concerns, with the estimated cost of running a ChatGPT query believed to be between 30 cents and $1, Vinh added, well below the cost of running a traditional Google search query, which he estimates at one hundredth of a cent. Other analysts have estimated Google spends roughly one-fifth of a cent on a search query.Nvidia's (NVDA) A100 GPU has an average selling price of approximately $10,000, while the H100, unveiled last March, has an ASP of around $25,000.As such, companies may look to keep costs for training large language models, or LLMs, as low as they can, using alternative chips, perhaps such as AMD's (AMD) MI300.In addition to AMD (AMD), Vinh added Broadcom (AVGO), Intel (INTC), Micron Technologies (MU) and Marvell Technologies (MRVL) are also likely to be beneficiaries of generative AI.Other companies may also look to eschew GPUs and focus on custom silicon to keep costs low, as Amazon (AMZN) has done with its Graviton ARM CPU and other ARM-based server projects.However, the pendulum may be swinging back in the direction of Nvidia (NVDA), Vinh suggested.\"[W]ith cloud providers increasing looking to cut Capex budgets, widespread layoffs in tech, and rising interest rates, there is increasing uncertainty in how aggressive these cloud projects will continue to be funded,\" Vinh explained. \"We believe these trends could mark a shift back toward higher usage of merchant silicon,\" while providing a benefit for companies like Nvidia (NVDA).Despite all the hype surrounding it, it is still early days for the rise of generative AI and its use cases beyond chatbots, Vinh noted. Nonetheless, \"there is increasing pressure for generative AI initiatives to significantly lower the cost disparity with search.\"For Nvidia (NVDA), the long-term total addressable market may be a \"sizable opportunity\" and with the company's continued advancements in AI, it's clear the company is focusing on the space as a way to drive growth.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[{"id":9957959736,"gmtCreate":1676942151926,"gmtModify":1676942166357,"author":{"id":"3586990023332519","authorId":"3586990023332519","name":"StarGate","avatar":"https://static.tigerbbs.com/9db084b2eae373a6cc56043329defb07","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"good info.","listText":"good info.","text":"good info.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9957959736","repostId":2312279206,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9957924532,"gmtCreate":1676939546427,"gmtModify":1676939550153,"author":{"id":"4134278158747952","authorId":"4134278158747952","name":"LimBT","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9957924532","repostId":2312279206,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9957925828,"gmtCreate":1676938886865,"gmtModify":1676938889139,"author":{"id":"4115684828159522","authorId":"4115684828159522","name":"MLFL","avatar":"https://community-static.tradeup.com/news/1d7ab965a9728265436a2d2a8db471ce","vip":1,"crmLevel":1,"crmLevelSwitch":0},"htmlText":"Good morning&nbsp;","listText":"Good morning&nbsp;","text":"Good morning","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9957925828","repostId":2312279206,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":79,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2312279206"}