- Despite Nvidia Corp's (NASDAQ:NVDA) AI moat, companies developing their AI models are migrating towards custom chips to curtail costs and tackle compatibility issues and supply crises.
- Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google is on its fourth iteration of its in-house Tensor Processing Unit (TPU).
- Meta Platforms, Inc's (NASDAQ:META) inaugural custom AI chip, Meta Training Inference Accelerator (MTIA), will likely go live in 2025.
- Microsoft Corp (NASDAQ:MSFT) has also jumped into the AI hardware bandwagon, Digitimes reports.
- Amazon.Com, Inc (NASDAQ:AMZN), though, with its duo of chips - Inferentia and Trainium - under its belt, has determined that software development will remain its primary focus.
- The decision of cloud providers to remain in charge will fuel alliances and revenue prospects for teams specializing in designing application-specific integrated circuits (ASICs), posing a headwind for chipmakers like Nvidia.
- Microsoft will likely bolster its strategic partnership with Advanced Micro Devices, Inc (NASDAQ:AMD). Meta is extending its chip technology collaboration with Broadcom Inc (NASDAQ: AVGO) on AI and metaverse. Taiwan-based IP and ASIC powerhouses like MediaTek, Global Unichip, and Alchip Technologies are likely contenders for a stake in the AI and high-performance computing (HPC) realm.
- Price Action: NVDA shares traded lower by 0.82% at $397.86 on the last check Wednesday.
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