Nvidia's Newest Chip Is Good News For GenAI Development But Bad News For Its Rivals


The week began Nvidia Corporation (NASDAQ: NVDA) unveiling its next major AI chip which will likely make life harder for its competitors, Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC), who are trying to catch up. With its stock rising more than 230% year-to-date and armed with the AI hype, Nvidia guided for third quarter revenue of about $16 billion which presents a 170% YoY increase.

The cloud arms of Amazon.com Inc (NASDAQ: AMNZ), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL)-owned Google, Microsoft Corporation (NASDAQ: MSFT), and Oracle Corporation (NYSE: ORCL) will be among the first to offer the new GPUs next year.

Nvidia Is Bringing The AI Chip Game To The Next Level

With 141GB of next generation “HBM3” memory, the H200 brings the ability to generate text, images or predictions using AI models. This new GPU is an upgrade from the H100 which Microsoft-backed OpenAI used to train its most advanced large language model, GPT-4. Based on a test in which it used Llama 2 LLM by Meta Platforms (NASDAQ: META), Nvidia said the H200 will generate output nearly twice as fast as the H100.

AMD And Its AI Chip Candidate

AMD is bringing a new chip that holds the promise of catching up to Nvidia. But it is unknown how will the upcoming AMD-made MI300 stand against Nvidia’s revised H200. The MI300 that AMD is developing is similar to the H200with additional memory over its predecessors that empower it to fit big models on the hardware to run inference.

Nvidia Powered HP To Deliver A Supercomputing Solution

With Hewlett Packard Enterprise Company (NYSE: HPE) announced a supercomputing solution to accelerate GenAI training that will be superpowered by Nvidia Grace Hopper GH200 Superchips. Together, Nvidia and HP promise to provide their consumers with the tool they need to achieve breakthroughs in their generative AI developments. The supercomputing “turkey” solution for GenAI that Nvidia and HP developed promises to accelerating training speeds by two to three times. It will be generally available in December 2023.

The H200 and high-end AI products that Nvidia is planning to release in 2024 and 2025 is certainly bad news for its AI chip rivals and good news for GenAI development. Nvidia is set to host a conference call regarding its fiscal third quarter results on November 21st.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.

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