The race to the top spot in the AI segment is heating up. Nvidia is leading the charge; chances are it could retain the momentum for a little longer. It faces competition from Microsoft, AMD, and Google, but the chip industry sees Nvidia as a key player. This builds on top of the fact that the company has announced its next chip within months of the previous model.
Dubbed Rubin, the AI chip was introduced by Jensen Huang, the CEO of Nvidia. The next-generation AI chip will succeed its previous model, which was announced in March this year. This somehow strengthens the company’s one-year rhythm. Rubin comes months after Nvidia announced launching Blackwell later in 2024. Blackwell is still in production, and it could take a little more time.
Huang is optimistic about the development. He said in a statement that Nvidia is practically pushing the boundaries with its innovation in AI and accelerated computing, adding that the company is also driving the next wave of advancements in technology.
Rubin will have a new central processor called Vera and graphic processing technology that assists AI systems in training and launch.
Nvidia reportedly holds around 80% of the market share for AI chips. This is reflected in its share value, too, which is believed to be a once-in-a-generation opportunity. It is likely to undergo the 10-for-1 split on June 7, 2024.
Announcements by Nvidia have come at a time when Microsoft made its plan public to boost AI into laptops. Copilot Plus PCs will bring integrated AI hardware and support for features that are inspired by AI. All the major partners of Microsoft – Dell, Samsung, Lenovo, and others – have expressed their interest in moving forward in offering Copilot Plus PCs. This has been confirmed by Satya Nadella, the Chief Executive Officer of Microsoft.
One major feature that the community is looking forward to is Recall. It has been crafted to utilize AI to create a photographic memory of every task that a user has performed. Yusuf Mehdi, the Microsoft Executive for Windows, said that it will make their laptops faster by 58% compared to MacBook Air, which sports an M3 processor with better battery life.
The only drawback is that Copilot Plus PCs need specific requirements to function. They include 16 GB RAM, 256 GB SSD, and an integrated neural processor. Qualcomm chips will support them, and they will have a battery life of up to 15 hours of web browsing. The first product in the line-up is tentatively scheduled to launch on June 18, 2024. Models integrated with AMD processors and Intel processors will ship later.
Meanwhile, Foxconn is aiming to capture 40% of the market share for AI servers by the end of this year. Officially known as Hon Hai Precision Industry, the company has ventured into diversifying its departments by including electronic vehicles, semiconductors, and servers. It has been in electronic assembly for a long time and is majorly associated with Apple’s iPhones.
Young Liu, the Chairman of Foxconn, in a shareholders’ meeting, said that achieving a market share of 40% will be an increase from 30% in 2023, adding that the AI industry is in the early stages of rapid growth with a lot of potential to become the main drivers of AI in the future.
AI servers are estimated to account for 40% of their overall server revenue, becoming the company’s next trillion-dollar revenue product.
Artificial Intelligence continues to remain at the center of discussion. Many experts argue over whether AI is an ally or not. Concerns about job losses have been prevalent for a longer time despite tech giants ensuring that AI will be more likely to assist them and make their jobs easier.
Nvidia’s shares are down by 0.82% as of 7:30 AM GMT. The stock is listed at $1,095.95 apiece. Industry experts have two optimistic predictions for Nvidia.
The company’s market cap is expected to surpass $10 trillion, and it could soon become the second most valuable company, surpassing Apple. The timeline is hard to draw because it could happen soon. It is only safe to assume that an accelerated launch of upcoming chips instills a sense of confidence among investors. Hence, it acts as a catalyst to boost the company’s growth and value.
AMD and Intel are the two top contenders, working to catch up with the market trend. Google, Microsoft, and Amazon have nearly caught up and are now aiming to dethrone Nvidia from the top position in the chip industry.
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