Intel & AMD Can’t Touch NVIDIA

Intel (INTC) has manufactured a new second generation Xeon Phi Coprocessor for artificial intelligence. It features up to 72 cores, and each core comprises 2 Intel AVX-512 SIMD processing units for supplying enhanced performance. Basically, these processors are designed for handling ML/DL workloads. Some analysts believe that Intel’s Xeon Phi Coprocessor will give tough competition to NVIDIA’s (NVDA) new Tesla P100 GPU accelerators, which are presently the best in class processors for ML/DL.

NVIDIA moved into the ML/DL segment with its dominant GPUs coupled with superior algorithms.
The company’s Tesla P100 GPU accelerators are grounded on its latest and advanced Pascal based GP100 GPU. On the other hand, Microsoft recently publicized that it will be introducing a new next generation gaming console next year. However, NVIDIA will not supply any processing components for the console, but the company will certainly gain huge advantages via the sales of its high performance graphics cards for PCs.

Keeping in mind the games that are being launched for PlayStation and Xbox, most of them are also launched for PCs with additional features and extra DLCs. NVIDIA recently launched its new graphics cards GTX 1070 and GTX 1080 based on its new Pascal architecture. These graphics cards are considerably cheaper than the company’s Titan graphics card, and are a lot more powerful as well.

Nowadays, huge gaming companies are working very hard to produce high-end graphics based games, and this could be the major reason to drive the sales of its new GTX 1070 and GTX 1080. NVIDIA’s foremost rival Advanced Micro Devices (AMD) also recently launched its new Polaris architecture, and today it introduced new graphics card Radeon RX 480 that particularly focuses on mainstream market.

This clearly means that Advanced Micro Devices has handed over the high-end graphics market to NVIDIA, and it is highly likely that NVIDIA will soon launch new graphics cards that will specifically focus on mainstream market. Moreover, NVIDIA observed strong demand for its new graphics cards, as both the cards were out of stock on GeForce.com, but the company has now improved its production and supply chain to reap huge profits.

Conclusion

All the three companies are taking steps in the right direction. However, I expect NVIDIA to be the leader in the respective segments for the foreseeable future. Intel and AMD will struggle to gain some ground on NVIDIA, which is why I think the latter is a great stock to hold for the long-term.
Published on Jul 6, 2016
By Prudent Investor

Copyrighted 2016. Content published with author's permission.

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