Good week on the stock market for AMD and NVIDIA. The shares of these two companies closed this week at record highs.
Nvidia and AMD have seen their shares rise 238.8% and 127.6%, respectively, over the past year, driven by the artificial intelligence (AI) craze. This dynamic therefore continues this year.
The stock price appreciation reflects immense investor interest in AI graphics processing unit (GPU) makers. Graphics cards were originally designed for playing video games. Then they were used more recently to mine cryptocurrency, due to their computing power. , but they are also essential for training and deploying complex AI models, such as OpenAI’s ChatGPT. This has led to a recent increase in sales of chips of this type.
Zuckerberg wants to buy “billions of dollars of GPUs this year, including 350,000 Nvidia H100s”
And for the past two years, Nvidia has been a leading GPU supplier to AI companies. As a result, Nvidia was one of the best performing stocks on the S&P500 index last year.
Investors are also optimistic about AMD, the second largest GPU maker. Especially since last year, AMD presented a new chip that could compete with Nvidia’s H100 chip.
Mark Zuckerberg, CEO of Facebook, has just declared that he wants to buy “billions of dollars of GPUs from companies like Nvidia this year, including 350,000 Nvidia H100s.”
Moving forward on AGI
Its goal ? Advance in its research on artificial general intelligence (AGI).
“Ultimately, we will have more than 600,000 graphics cards (GPUs), including H100s,” he added.
Nvidia’s high-performance AI chip H100 excels at AI calculations despite an estimated cost of $25,000 to $40,000 per unit. 1.5 million units were reportedly sold last year alone. If Meta paid the lowest price for its H100s, its investment would be a little less than… $9 billion.
But the leadership of graphics card manufacturers in the field of AI could soon find new competitors. Taiwanese company TSMC, which also recently reported better-than-expected results, said that “AI chip manufacturing could account for 10% of total revenue in five years.”
Sources: “ZDNet Korea” and “ZDNet Korea”