In the midst of a global chip crisis — the computer kind, not the ones you dip in guacamole — it seems to be the chipmakers coming out on top.
And that’s exactly what Nvidia (NASDAQ: NVDA) is counting on as it seeks to take the fight to arch-rival Intel (NASDAQ: INTC)!
The king is dead..?
There’s a lot to unpack from Nvidia’s 2021 Investor Day event yesterday, so much so that my editor would turn purple if I handed him a full account. So, with said editor’s health in mind, we’re just going to talk about Nvidia’s bold plans to make its own server central processor, dubbed ‘Grace’, based on Arm technology.
For those not in the know, Arm Ltd. is a UK-based semiconductor company that Nvidia purchased for $40 billion last year. There are some anti-competition watchdogs who don’t approve of this marriage — but Nvidia has decided to elope anyway and is producing its first data center CPU chips based on Arm’s tech, challenging Intel in its last dominant market, where it holds more than 90% market share.
“Coupled with the GPU and DPU, Grace gives us the third foundational technology for computing, and the ability to re-architect the data center to advance AI. NVIDIA is now a three-chip company,” Nvidia CEO Jensen Huang said in a statement.
This is a massive move for Nvidia, which has traditionally focused on graphics cards and vehicle components. With a loyal fanbase and a seemingly superior product, Nvidia has entered a new arena for income generation in a market that is expected to reach annual global revenues of $251 billion by 2026.
Though early days, Nvidia has a fresh chance to rapidly grow its already $380 billion business.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.
Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.