When Nvidia (NVDA) announced a refresh to its H100 AI server, markets thought Blackwell B200 would widen its moat. Intel’s (INTC) AI announcement yesterday and Google’s AI chip news changed that. The price paid for AI servers matters. Both Intel and Google may have less expensive solutions. That would cut the customer’s reliance on Nvidia.
Intel announced the Gaudi 3 AI accelerator. The hardware delivers, on average, 50% better inference. Team Intel claims the system is 40% more efficient than Nvidia’s H100. If true in real-world tests, this is a welcome change. On the PC market, Intel’s powerful i9 CPUs consume too much electricity and produce too much heat. They reach thermal temperature limits causing the chip to throttle.
Markets underestimate Intel’s potential to disrupt the AI market. INTC stock plunged from over $50 in Jan. 2024 to below $38 on Monday, before rebounding slightly.
Alphabet’s (GOOG) Google unveiled a massive list of success stories to highlight its AI. GOOG stock closed at a 52-week high on Tuesday. Gemini 1.5 Pro is a notable enhancement. It can process audio and video. The solution could, for example, search for phrases in a baseball game recording in just seconds.
Alphabet needs Gemini to quickly grow in market share. Microsoft (MSFT) continued to add users, giving away CoPilot free. If users still prefer Google search to Bing, then Alphabet still has a chance to lead in the AI market.
