Huawei's New AI Chip 950PR Gains Interest from Major Tech Firms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- Successful Customer Testing: Huawei's new AI chip, the 950PR, has performed well in customer testing, with major tech firms like ByteDance and Alibaba planning to place orders, indicating a shift in market acceptance of domestic semiconductors that could reshape Huawei's competitive landscape in the AI chip market.
- Clear Production Plans: Huawei aims to ship approximately 750,000 units of the 950PR chip in 2023, with samples sent out in January and mass production expected to begin next month, setting the stage for full-scale shipments in the second half of the year, thereby solidifying its market position.
- Enhanced Technical Compatibility: The 950PR chip offers improved compatibility with Nvidia's CUDA software system and faster response times, enabling Chinese tech firms to migrate existing models more easily, which is crucial as demand for AI inference computing surges in the region.
- Surging Market Demand: As China's tech sector shifts focus from model development to real-world deployment, the demand for AI inference computing is skyrocketing, and the launch of the 950PR chip aligns perfectly with this trend, potentially opening new growth avenues for Huawei.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.240
Low
200.00
Averages
264.97
High
352.00
Current: 171.240
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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- Revenue Projections: Wall Street analysts expect Nvidia to add another $110 billion in sales next fiscal year, which, combined with the current $480 billion projection, could lead to total revenues of $600 billion, further solidifying its market position.
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- Market Demand and Challenges: While the concept of space data centers garners interest, practical implementation faces high launch costs and technical hurdles, with Nvidia's advancements potentially serving as a first step in overcoming these obstacles.
- Partnerships: Nvidia collaborates with several space tech companies, including Starcloud, which successfully launched the first satellite operating an Nvidia H100 GPU in space, showcasing its strategic positioning in the space market.
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See More
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- Rise of Nebius Group: Nebius Group reported a 547% year-over-year revenue increase in Q4, achieving an annualized run rate of $1.2 billion, with expectations to reach $7 billion to $9 billion by the end of 2026, underscoring its critical role in AI cloud infrastructure.
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See More
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- Surging Data Center Demand: According to Dell'Oro Group, global data center spending is projected to soar to $1.7 trillion by 2030, driving investments in AI infrastructure, particularly benefiting chipmakers and data center builders.
- Strong Nvidia Performance: Nvidia reported a 75% year-over-year revenue growth in its data center segment, with a sequential increase of 22%, indicating robust demand in the AI market and high profit margins, suggesting continued growth ahead.
- Rapid Growth of Nebius Group: Nebius Group achieved a remarkable 547% year-over-year revenue increase in Q4, reaching an annualized revenue of $1.2 billion, with expectations to grow to $7 billion to $9 billion by the end of 2026, highlighting its strong position in AI cloud infrastructure.
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See More
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- Market Competitiveness: Nvidia's competitive advantage in hardware is evident, with a higher barrier to entry and a commanding role in the AI pipeline, whereas Palantir's reliance on large government contracts may limit its growth potential despite its diversification efforts.
- Long-term Investment Confidence: When considering long-term investments, Nvidia is viewed as having greater potential due to its stable hardware business and market leadership, even though both stocks face volatility; Nvidia's valuation makes it more resilient to market risks.
See More
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- Competitive Advantage Analysis: Nvidia possesses a higher barrier to entry in the AI hardware sector and plays a more critical role in the AI pipeline, whereas Palantir's business, while becoming more diversified, still heavily relies on large government contracts, which may limit its long-term growth potential.
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See More
