Nvidia's Vera Rubin GPU Design Change Impacts Memory Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy NVDA?
Source: seekingalpha
- Design Change Impact: Nvidia's shift from a 4-die to a 2-die design for its Vera Rubin GPU line has led to significant declines in memory stocks, with companies like Micron Technology (MU) and Western Digital (WDC) seeing drops between 4.5% and 10% on Monday, indicating market concerns over the new design's viability.
- Market Reaction: Analyst Jeff Pu from GF Securities noted that the complexity of 4-die packaging makes its likelihood low, and he now expects two versions: Rubin Ultra 2-die and Rubin Ultra 2-die x 2, which may affect demand for related memory components.
- Memory Component Stability: Despite the design changes, Pu believes the impact on components within Vera Rubin is minimal, as fewer packaged dies are expected to lead to a higher volume of packaged Rubin Ultra, maintaining the expectation of using next-generation high-bandwidth memory (HBM4E) at 64 GB per cube.
- Industry Outlook: The decline in memory, storage, and optical stocks has dragged down the entire chip sector, although Pu pointed out that other components like optical are unaffected in terms of bandwidth, suggesting that market confidence in Nvidia and its partners remains intact.
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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: 175.750
Low
200.00
Averages
264.97
High
352.00
Current: 175.750
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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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