Impact on semiconductor-related stocks driven by the AI boom ①
backgrounds
“AI is the big elephant in the room” $Intel(INTC.US$ This is because their exposure to AI is solid. Intel's AI accelerator Gaudi 3 directly competes with Nvidia's H100 series. During the Vision 2024 event, Intel management stated that the Gaudi 3 will have an average of 50% better reasoning and an average 40% better power efficiency than the Nvidia H100.
There is a high possibility that Gaudi, which has achieved an attractive price compared to the H100, will become a popular model to replace the H100 series. Furthermore, the previous generation Gaudi 2 proved its appeal by powering up the Llama Large Language Model (LLM) of Meta Platforms, Inc. (META).”
Intel and why it's rising now
Intel $NVIDIA(NVDA.US$ with $Advanced Micro Devices(AMD.US$ Since research and development expenses are about the same as when combined, such results have been obtained.
Intel is constantly improving and raising standards.
What bears have overlooked the most is that despite making this much capital investment, Intel is still making huge profits.
When the new foundry IDM 2.o is completed
The amount of capital investment will drop drastically, and earnings will increase drastically.
I want you to take a look at the earnings of Taiwanese cicadas to see how much profit they have.
Intel has made extremely high profits, and its earnings will surpass those of Nvidia and AMD combined.
I think sometimes people don't understand how big this can get.
P.S. We are a catch-up trade for AI in the second half, and the more people who understand what is happening here, the more crowded this trade will become.
Intel will once again become a triple-digit stock.
This doesn't mean that NVDA and AMD won't continue to grow. At the end of the day, the semiconductor sector is huge.
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becchi : That's because Gaudi 3 isn't CUDA compatible.