Key AI Debates For 2024: Nvidia Competitors Threaten Semiconductor Giant's Dominance With Custom Chips
Portfolio Pulse from Shanthi Rexaline
Morgan Stanley analyst Brain Nowak highlights key AI debates for 2024, focusing on personal AI assistants, the future of search, AI creator tools, SMID-cap AI beneficiaries, AI ASIC adoption, AI regulation, foundational model market share, robotics, health care, and autonomous vehicles. Alphabet (GOOG, GOOGL) is seen as leading in personal AI assistant technology and health care advances, while Amazon (AMZN), Apple (AAPL), and Meta (META) are also positioned well. SMID-cap companies like Snap (SNAP) and Pinterest (PINS) could benefit in online advertising, and Chewy (CHWY) and Etsy (ETSY) in e-commerce. Nvidia's (NVDA) dominance in GPUs may be challenged by custom AI chips from Amazon, Google, Meta, and Microsoft. Autonomous vehicle development is a sector to watch, with Alphabet, Amazon, Tesla (TSLA), and General Motors (GM) as key players.
November 23, 2023 | 5:53 pm
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POSITIVE IMPACT
Apple's involvement in personal AI assistants could enhance user engagement and drive growth.
Apple's focus on personal AI assistants is likely to increase user engagement and could lead to growth in its ecosystem.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Amazon's development of custom AI chips and its positioning in personal AI assistants and autonomous vehicles could impact its competitiveness.
Amazon's investment in AI technology, including custom chips and personal AI assistants, indicates potential for increased competitiveness and market share.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Chewy's AI investments in e-commerce could enhance its performance and market position.
Chewy's investment in AI for e-commerce could lead to improved performance and a stronger market position, which may positively impact its stock price.
CONFIDENCE 65
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Etsy's AI investment could drive performance improvements and strengthen its e-commerce market position.
Etsy's focus on AI in e-commerce is expected to lead to performance improvements, potentially benefiting its stock price and market position.
CONFIDENCE 65
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
General Motors' involvement in autonomous vehicles with AI could impact its competitive position in the automotive industry.
General Motors' investment in AI for autonomous vehicles could lead to advancements that enhance its competitive position in the automotive industry.
CONFIDENCE 70
IMPORTANCE 55
RELEVANCE 65
POSITIVE IMPACT
Alphabet is highlighted as a leader in personal AI assistant technology and health care AI advances, which could strengthen its market position.
Alphabet's leading position in AI assistant technology and health care AI advances suggests a positive outlook for its services and potential market share growth.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Meta's efforts in personal AI assistants and custom silicon could impact its future growth prospects.
Meta's strategic focus on AI technology, including personal AI assistants and custom silicon, could positively influence its growth and market position.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Pinterest's AI investments could lead to performance gains, potentially improving its competitive edge.
Pinterest's AI investments are expected to yield performance improvements, which could positively influence its stock price and competitive position.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Snap could see performance improvements and benefits from AI investments, impacting its market position.
As a SMID-cap company investing in AI, Snap could experience material performance improvements, which may positively affect its stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Tesla's advancements in autonomous vehicles with AI could accelerate its leadership in the sector.
Tesla's focus on AI for autonomous vehicles could lead to technological advancements, enhancing its leadership and potentially benefiting its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
Nvidia's GPU dominance is under threat from custom AI chips developed by competitors, which could impact its market share.
The development of custom AI chips by companies like Amazon, Google, and Meta poses a direct threat to Nvidia's GPU market dominance, potentially affecting its stock price.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 85