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.
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.
It's amazing how the company is growing and since April the stock is up maybe 50% 😂
I think it's a great move and it's a signal that the company is going to do well again. I did a lot of buying last month and I'm now in a nice profit.
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.