Is the impact of Intel returning to the GPU market on Nvidia being underestimated?
$Intel(INTC.US$ $Advanced Micro Devices(AMD.US$ $Taiwan Semiconductor(TSM.US$ $NVIDIA(NVDA.US$ I have noticed that most people on here are very bullish towards Nvidia even at its current valuation but I haven't seen much talk about how Intel's return to the GPU market will affect Nvidia's valuation and future growth.
Intel has the money and talent especially with Raja Koduri leading the Graphics department to become highly competitive with Nvidia if not a leader in the market. Intel will also have the advantage of using their new fabs in the future to produce their GPU's whereas Nvidia will be reliant on TSMC/Samsung.
With AMD also becoming more competitive and both Intel and AMD not being as limited to just the GPU market unlike Nvidia, should people be worried that Nvidia may have to lower profit margins and suffer from lower growth that could make their current price look extremely high?
For disclosure I do own some INTC and would be interested in NVDA if the valuation was more reasonable.
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Dabria : As Intel themselves have said it: don't expect miracles over the short term.
Jacinthen : Nvidia isn't worried about intel because intel isn't trying to take on the GPU space the same way AMD does. intel wants discrete graphics first then low power consumption stuff mostly for laptops. They won't get any real market share in server or dedicated graphics for a long time. NVDA is still a great buy n hold stock, but if you own it get AMD too. That way, when one falls, the other rises.
Markio1315 : You do realise how far apart the tech gaps between them. Intel was hampered by the previous management, they rest on their laurels and the competition has flew past them.
Teslaconomics : Investment is a long-distance running process, and no results can be seen in the short term