The previous decline in Nvidia shares seems curious after this news:
- Intel unveils a chip called Gaudi 3, an AI accelerator chip
- Outperforms Nvidia’s H100 chip (according to Intel at least)
- Be “widely available” in the third trimester
Intel just announced that it “introduced the Intel Gaudi 3 AI Accelerator, delivering 50% better inference on average and 40% better power efficiency on average compared to the Nvidia H100 – for a fraction of the cost.”
Obviously, the smart thing to do here is to take these claims with a grain of salt. That said, this could be important for both INTC and NVDA.
The H100 chip is one of the most in-demand products ever produced. Elon Musk said today that forming the next generation of Grok 3 will require 100,000 H100 chips. There is similar, if not more, demand across the globe for AI chips. Right now it all goes to NVDA and buyers are virtually price insensitive.
If Intel could deliver a chip that could take market share at a lower price, then price would suddenly matter. What’s particularly impressive is the claim that it will be “widely available” by the third quarter. If this is true and the accompanying software works as well as Nvidia’s Cuda, then the order book will fill up quickly.
The market will want this to be proven, but I think the US government wants Intel to win and massively fund its factories. It’s a large American company going through tough times, but everyone loves a turnaround and is certainly in the right business.
Additionally, Jim Cramer seemed ready to abandon the company and its CEO Pat Gelsinger last week in a breakdown somewhat reminiscent of his vomiting up META to the bottom.
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