Key insights
- The discussion centers on Nvidia's new AI superchip, highlighting its high price point and specialized nature, suggesting it's unlikely to penetrate the mass market. The analyst raises concerns about ARM vs. X86 compatibility and emulation efficiency, which could impact performance and power consumption. While Nvidia leads in AI, the high cost and niche application may benefit competitors like AMD and Intel in the server market, where buyers are more willing to pay a premium. The overall influence on the US market is slightly positive due to continued AI innovation and competition.
Bokeh Capital Partners Founder and Chief Investment Officer Kimberly Forrest joins Julie Hyman on Market Catalysts to discuss Nvidia's (NVDA) new superchip, its role in the AI race, and who will use the chip.
If you look at the history of Nvidia, which I followed them since the early 90s when they were a GPU, that's all they did was were GPUs for essentially video gamers and they always had the highest priced product out there.
Yes, it was the highest capability, highest tech, but always highest priced.
These are not people that want to make mass market devices. They're just not.
So I'm going to say that's probably a hard no there.
The other thing that's really worrying, and the reporter before us just touched on this, is the whole issue of ARM versus X86.
And, oh my God, do I sound like a nerd? I am a nerd.
But this is really big.
If you're spending that much money for this chip, you don't want it to run your your game on emulation.
Emulation is is saying that, you know, there's this other system over here and it's going to be overlayed on the native operating system.
And guess what? And things just don't work 100% plus all that power that you're paying for, a lot of it is getting sucked up in the emulator.
So these are concerns that I have, but I think the whole huge amount of memory is the right direction for AI on a PC.
I think AMD and Intel really like to have good chips, right?
Great chips, especially in the server market because that's where um, the buyers will certainly pay up for it.
The mass market is not, I don't think is ever going to be in the market for this particular chip or even the son of the Nvidia chip.
It's just way too high-powered and probably you're not going to be using things that need it.
That's the other thing.
I think it takes some of the glamour out of what has happened to especially Intel and to somewhat to a lesser extent AMD recently with their jump up in prices saying, oh, we compete in AI too.
But AI is such a broad market and this is such a specialized super duper chip set that they're coming out with.
and that um, sorry, Nvidia is coming out with.