Huawei takes aim at Nvidia as it readies its newest and most powerful artificial-intelligence processor.
Transcript:
STEPHEN GUILFOYLE: So we’re talking about Huawei and Nvidia and the AI trade right. The semiconductor AI trade right now I mean I was long Nvidia and Advanced Micro Devices probably since the cows came home until about maybe a month or two ago. And I got out of both of those names, I had whittled down those positions as they eroded. I got out of those positions completely. Now, that doesn’t mean I don’t believe in Jensen Wang. It doesn’t mean I don’t believe in Lisa Hsu. It it does mean that I think we’re in a tough spot as far as this goes. Not only are they not allowed to sell last year’s model or 2022 model AI chip to the Chinese customers, and now Huawei is filling that hole.
There also is pressure on the hyperscalers here in the U.S., to even either diversify who they’re buying their chips from, maybe manufacture their own, such as Apple and Amazon and a couple of others are doing or just pressure. These the designers of these, you know, higher end AI capable chips to on price. I don’t I don’t think they have pricing power the way they once did. And not that the AI trade is going to slow down completely. I think Andy Jassy of Amazon told us that in his letter. I mean, maybe a week or two ago. It’s still there. But he also told you that they’re making a lot of their own chips now. And so that trade is going to change. And until I get a clear direction, I am not an investor in Nvidia or AMD right now who I see as the leaders in that field as far as design is concerned.
Subscribe |
Earn. Live. Invest. |
TheStreet Pro |
#nvidia #huawei #ai
source
