Intel Says It Won't Even Make $500M From Gaudi AI Chips In 2024 Despite Nvidia Minting Billions: CEO Gelsinger Says Uptake 'Slower Than We Anticipated'
Portfolio Pulse from Rounak Jain
Intel's Gaudi AI chips are expected to generate less than $500 million in 2024, missing the target of $1 billion to $2 billion. This shortfall is attributed to a slow transition from Gaudi 2 to Gaudi 3. Intel's stock has fallen significantly in 2024, and Qualcomm is reportedly considering a takeover. Meanwhile, Nvidia's AI chip dominance has boosted its market cap, while AMD is gaining momentum in the data center segment.
November 01, 2024 | 1:40 pm
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NEGATIVE IMPACT
Intel's Gaudi AI chips are expected to generate less than $500 million in 2024, missing the target of $1 billion to $2 billion. This shortfall is due to a slow transition from Gaudi 2 to Gaudi 3, impacting adoption rates.
Intel's failure to meet revenue targets for its Gaudi AI chips indicates potential challenges in its AI strategy, which could negatively impact investor sentiment and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Qualcomm is reportedly considering a takeover of Intel, highlighting Intel's current weak phase. This potential acquisition could impact Qualcomm's strategic positioning.
While Qualcomm's potential takeover of Intel is speculative, it indicates strategic interest in Intel's assets, which could affect Qualcomm's market positioning.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
AMD is gaining momentum in the data center segment, with its revenue increasing in recent quarters. This positions AMD as a growing competitor in the chip market.
AMD's increasing revenue in the data center segment indicates growth potential, which could positively impact its stock price as it gains market share.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 40
POSITIVE IMPACT
Nvidia continues to dominate the AI chip market, with its stock benefiting from this position. Nvidia's market cap has risen significantly, surpassing Intel and AMD.
Nvidia's strong position in the AI chip market and its rising market cap suggest positive investor sentiment and potential stock price appreciation in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50