UBS Analyst Eyes GPU Bottlenecks for Microsoft's AI Push, Nvidia's Supply Chain in the Spotlight
Portfolio Pulse from Anusuya Lahiri
UBS analyst Karl Keirstead reiterated a Buy rating on Microsoft Corp with a price target of $400. He highlighted the risk of GPU supply constraints from Nvidia Corp for Microsoft's AI ambitions. The AI opportunity that has powered the material out-performance in technology stocks this year primarily comes from Nvidia, the dominant provider of GPUs. GPU demand is out-stripping supply, which is evident in Super Micro Computer, Inc's recent quarterly results.
August 29, 2023 | 7:21 pm
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NEGATIVE IMPACT
Nvidia's supply constraints could impact its position as the dominant provider of GPUs.
Nvidia is the dominant provider of GPUs. However, it is facing supply constraints which could impact its position as the dominant provider.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Super Micro Computer's recent quarterly results show the impact of GPU supply constraints.
Super Micro Computer's recent quarterly results show the impact of GPU supply constraints. This could impact the company's future performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Microsoft's AI ambitions could be impacted by GPU supply constraints from Nvidia.
Microsoft's AI ambitions are dependent on GPUs from Nvidia. However, there are supply constraints from Nvidia which could impact Microsoft's ability to deliver on its AI ambitions.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80