TMTB: NVDA enters custom chip market; Altman wants to raise $7T; PINS BILL NET EXPE AFRM Recaps; 3p Roundup
Good morning - QQQs are up 60bps. BTC is ripping +4-5% while yields are slightly down. Let’s get straight to the good stuff…
NVDA - Nvidia chases $30 billion custom chip market with new unit
Watch +ve ERIC / neg MRVL/AVGO/QCOM. NVDA’s plan to help build custom AI accelerators would mean bigger competition for MRVL/AVGO and partnership with ERIC might mean more competitive pressure for QCOM.
Nvidia is building a new business unit focused on designing bespoke chips for cloud computing firms and others, including advanced artificial intelligence processors, according to nine sources familiar with the company's plans.
The dominant global designer and supplier of AI chips aims to capture a portion of an exploding market for custom AI chips and to protect itself from the growing number of companies interested in finding alternatives to its products.
"With Broadcom's custom silicon business touching $10 billion, and Marvell’s around $2 billion, this is a real threat," said Dylan Patel, founder of the silicon research group SemiAnalysis. "It's a real big negative - there's more competition entering the fray."
Nvidia is in talks with telecom infrastructure builder Ericsson for a wireless chip that includes the chip designer's graphics processing unit (GPU) technology, according to two sources familiar with the talks.