ByteDance Partners with Samsung to Develop AI Chips
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVDA?
Source: stocktwits
- AI Chip Collaboration: ByteDance is partnering with Samsung Electronics to produce 100,000 AI chips in 2024, with plans to ramp up annual production to 350,000 units, significantly enhancing ByteDance's competitiveness in the AI sector while putting pressure on Nvidia's business in China.
- Increased Market Challenges: As ByteDance and other Chinese tech firms accelerate their efforts to develop AI chips domestically, Nvidia faces greater challenges, particularly with its H200 chip sales still awaiting government approval, which could impact its market share in China.
- Technological Progress and Strategic Positioning: ByteDance has been hiring chip-related staff since 2022 and has engaged U.S. chipmaker Broadcom for chip design, indicating a long-term strategic positioning in the high-end semiconductor field aimed at reducing reliance on external suppliers.
- Intensified Industry Competition: The SeedChip project positions ByteDance to compete with rivals like Alibaba and Baidu, which have already launched their own AI chips in the market, further intensifying competition within the industry.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 190.040
Low
200.00
Averages
264.97
High
352.00
Current: 190.040
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Market Challenges: As ByteDance and other Chinese tech firms accelerate their efforts to develop AI chips domestically, Nvidia faces greater challenges, particularly with its H200 chip sales still awaiting government approval, which could impact its market share in China.
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- Market Dominance: Nvidia holds approximately 90% market share in the data center chip market, leveraging its Hopper, Blackwell, and upcoming Ruben architectures along with CUDA software to enhance its competitive edge in AI application development, ensuring sustained revenue growth.
- Strong Financial Performance: For the third quarter of fiscal 2026, Nvidia reported a 62% increase in revenue and a 65% rise in net income year-over-year, showcasing its robust performance in the AI sector, attracting investor interest and boosting market confidence.
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- AI Chip Collaboration: ByteDance is partnering with Samsung Electronics to produce 100,000 AI chips in 2024, with plans to ramp up annual production to 350,000 units, significantly enhancing ByteDance's competitiveness in the AI sector while putting pressure on Nvidia's business in China.
- Increased Market Challenges: As ByteDance and other Chinese tech firms accelerate their efforts to develop AI chips domestically, Nvidia faces greater challenges, particularly with its H200 chip sales still awaiting government approval, which could impact its market share in China.
- Technological Progress and Strategic Positioning: ByteDance has been hiring chip-related staff since 2022 and has engaged U.S. chipmaker Broadcom for chip design, indicating a long-term strategic positioning in the high-end semiconductor field aimed at reducing reliance on external suppliers.
- Intensified Industry Competition: The SeedChip project positions ByteDance to compete with rivals like Alibaba and Baidu, which have already launched their own AI chips in the market, further intensifying competition within the industry.
See More
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- Record Sales for TSMC: TSMC reported net revenue of NT$401.26 billion (approximately $12.7 billion) in January, marking a 37% year-over-year increase and a 20% month-over-month rise, achieving the highest monthly sales in its history, which strongly supports the demand for Nvidia's GPUs.
- Market Dominance: TSMC controls about 71% of the global chip market and manufactures over 90% of the most advanced semiconductors, establishing itself as a key bellwether for AI demand and further solidifying its position in high-performance computing and smartphones.
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