In a recent announcement, Microsoft revealed that it would be providing its cloud computing customers with the option to utilize AMD’s MI300X artificial intelligence (AI) chips through its Azure service, alongside NVIDIA’s H100 Graphics Processing Units (GPUs). While some may wonder if it’s time to shift investments from NVIDIA to AMD, the answer is more nuanced.
Both NVIDIA and AMD are facing challenges in meeting the high demand for their GPUs, with semiconductor manufacturing giant TSCM noting that its capacity is fully booked due to the popularity of these chips. TSCM is actively expanding its production capacity to meet the demand for AI chips and high-performance computers (HPC).
Despite the demand for GPUs, it may take some time for the market to ease up as TSCM continues to expand its facilities and adopt new technologies like 2-nanometer chips. In the meantime, investors may want to consider investing in both NVIDIA and AMD, as well as TSCM, to capitalize on the growing demand for high-performance chips.
NVIDIA has established itself as a leader in the GPU industry and continues to see impressive growth, while AMD stands to benefit from the tight GPU market and has the potential to become a strong player in the industry. Additionally, TSCM is poised to benefit from the rising demand for GPUs and AI chips as companies look to leverage these technologies.
In terms of valuations, TSCM appears to be the most attractively priced stock, trading at lower multiples compared to NVIDIA and AMD. However, both NVIDIA and AMD offer strong long-term potential despite their higher valuations.
Ultimately, the decision to invest in advanced microdevices should be considered in the context of the broader market dynamics and individual risk tolerance. Investors may want to diversify their portfolio by considering all three companies – NVIDIA, AMD, and TSCM – to capture opportunities in the rapidly evolving semiconductor industry.
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https://finance.yahoo.com/news/time-dump-nvidia-stock-advanced-073500897.html