When Nvidia (NVDA) rallied to $400, it briefly fell below that only to continue its climb. The GPU server supplier expects billions of dollars in revenue in the next quarter alone. Is AI a real long-term growth play or does AI stand for artificially inflated?
Nvidia circumvented a potential stop in GPU chip sales in China. It developed a scaled-down, less powerful AI chip. The U.S. may impose new export restrictions this month. Markets are not prepared for this setback and may take profits on NVDA stock.
Investment firm Daiwa Capital said that channel checks validate Nvidia’s strong position in artificial intelligence. The firm found that Nvidia dominates AI and generative AI. Neither AMD nor Intel (INTC) offers the same level of full-scale offerings.
Nvidia posted performance records for its H100 GPU. However, Intel Gaudi-2 is faster than H100 for image classification tasks. But since Intel’s chip is behind on a large language model, Nvidia earns the top-performance title.
Corporations that do not fall into the hype will limit purchases of the Nvidia H100 GPU. Instead, they will consider buying Intel Gaudi, whose cost is half. When Intel launches Gaudi-3, it may stun Nvidia if it outperforms the H100.
Markets are ignoring Intel’s potential to rise from here, whereas Nvidia stock is priced beyond perfection.
