Semiconductor world – CPU/GPU Wars

Training will ‘finally’ taper down. The margins are mouth watering as of now. Any comments on the valuation of nvidia and amd?

Most analysts IMHO Falsely bin AMD along with intel or even nVIDIA. Which neglects a fundamental difference. AMD is the only company running a successful GPU business along with its CPU business. All AI training processors we see are an outgrowth of nvidia’s GPU business. The general purpose programmability of the GPU lends to this.

As of this day, we can say AMD training biz is negligible/nonexistant . The future of AMD is a bet on training too. I am not saying this will happen. Only saying these analysts are missing the potential + ignoring the fact that AMD is targeting the training market. Intel is nowhere here at least till 2025. They are currently selling some paltry low end GPUs.

AMD already has a foot in AI training market via supercomputers.

They mention their goals – “30x Increase in energy efficiency for AMD processors and accelerators powering servers for AI-training and HPC (2020-2025).3”

This was elucidated by Lisa Su in ISSCC 2023

ISSCC 2023 Plenary – Lisa Su: Innovation For the Next Decade of Compute Efficiency

Apart from this:

1. They already have a play in inference with their v70 cards – AMD Data Center & AI Technology Premiere Replay – YouTube – This is one of the world’s largest hedge fund coming on stage and mention 35% improvement in inference performance. I personally think we cannot ignore what these guys say. The microsecond speed difference directly affects their bottom-line. And these guys operate in regulated market.
2. They have the edge play too – How? Xilinx – This is one big chunk of biz that is currently carrying AMD through the tough times with client biz. Most analysts miss this giant inside AMD. AMD is actually two big companies working in tandem.