Aiming at up to US$30 billion (about NT$939 billion) in customized chip business opportunities, foreign media reported that Nvidia plans to set up a new department, which will design customized chips for cloud computing companies and other companies, including advanced artificial intelligence processors. Encouraged by this news, Nvidia's stock price opened directly above $700 on Friday (9th) at 705At $33, the stock price continued to chase the price in the buying order, and the stock price opened higher, and finally rose 358%, closed 721$33, cumulative this year, the stock price has risen 4975%。
Reuters reported that the global AI chip design leader and leading company intends to expand the growing market for customized AI chips and protect itself from the growing number of companies interested in finding alternatives.
Nvidia currently controls about 80% of the market for high-end AI chips, a position that has more than doubled its market capitalization in 2023 and has increased by 40% to 1 so far this year73 trillion US dollars (about NT$54.)$15 trillion).
Nvidia's customers, including ChatGPT creator OpenAI, Microsoft, Alphabet and Meta Platforms, are scrambling to snap up Nvidia's dwindling chip inventory to compete in the burgeoning generative AI space, according to nine sources familiar with the company's plans.
Because NVIDIA's H100 and A100 chips, although powerful, are general-purpose chips that cannot meet the needs of specific scenarios, and the cost is too high, some customers have begun to develop their own chips for specific needs to reduce energy consumption and shorten design time and cost.
To this end, NVIDIA plans to help these companies develop custom AI chips to expand their market share and enter the data center custom chip space, which was previously dominated by Broadcom and Marvell technologies.
NVIDIA has never disclosed the H100**, and according to estimates, the price of these chips starts at $1$60,000 to $100,000 (about NT$50.)080,000 to 3,130,000 yuan), depending on the purchase volume and other factors. Meta has said it plans to increase its total inventory of H100s to 350,000 units this year.
Nvidia has held talks with representatives from Amazon, Meta, Microsoft, Google and OpenAI to discuss building custom chips for them.
In addition, Nvidia also plans to expand into the telecommunications, automotive and gaming customer markets.
According to 650 Group's Alan Weckel, the data center custom chip market is expected to reach US$10 billion (about NT$313 billion) this year and double in 2025.
According to Needham analyst Charles Shi, the broader custom chip market is worth about $30 billion by 2023, accounting for about 5% of annual global chip sales.
Currently, the data center custom chip design is dominated by Broadcom and Marvell technologies, and with the addition of Nvidia, it could pose a threat to the sales of both companies.
Dylan Patel, founder of chip research group SemiAnalysis, said that Broadcom's customized chip business reaches $10 billion, and Marvell's size is about $2 billion (about NT$62.6 billion), and Nvidia will become a real threat. 」