New: $NVDA has introduced NVLink Fusion, a new technology that allows its GPUs to be connected to third-party chips (e.g. CPUs from AMD, Intel or third-party accelerators).
Strategy: This is a significant shift from a closed ecosystem, which:
Increases acceptability for enterprise customers and hyperscalers (AWS, Google Cloud, etc.).
Enables compatibility in heterogeneous data centers.
Analytical insight:
Without compromising margins - NVLink remains a proprietary technology, protecting Nvidia's premium hardware pricing.
Long-term market share gains are expected, particularly in AI and high-performance computing (HPC).
Sales could grow as wider availability of NVLink may accelerate Nvidia's adoption in new systems.
Conclusion: this move shows that $NVDA is aware of the growing competition (especially from AMD's MI300, Intel's Gaudi, and specialized AI chips) - and instead of closing itself off, it has opted for smart openness that increases the appeal of its ecosystem without reducing its technology lead.
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GP
The company knows what it is doing, but I have my money on AMD because it has more potential and I think there will be a huge demand for their chips over time.
TM
I see it similarly, because AMD has those chips cheaper and for small to medium sized businesses it will be a better and more efficient choice.