Top Tweets for #AppliedMaterial

$AMD is set up to take a lot of market share from $NVDA for 2 reasons: 1. Much of of $NVDA ´s moat stems from CUDA, which enables developers to interact with $NVDA GPUs seamlessly when coding. However, Pytorch has become the dominant framework for deep learning (AI) and now, $AMD GPUs work out of the box on Pytorch. This opens the veil for $AMD to disrupt $NVDA ´s software moat and levels the playing field. 2. $NVDA ´s chips are monolithic, while $AMD ´s chips are chiplet based. Chiplets have enabled $AMD to disrupt $INTC by yielding high performing but **cheap** chips. This is because when you make a chip out of chiplets, if one of the components goes wrong you don´t have to throw the entire thing away. Hence, **yields** are much higher than in monolithic architectures. I believe the same is going to happen on the GPU side. Chiplets have **lower margins** and so pivoting to this would hurt $NVDA ´s financials: a clear case of the Innovator´s Dilemma. $NVDA has a fantastic business and will hardly find the incentives to disrupt itself moving towards chiplets. ----------------------------------------- In combination, a democratization of deep learning development tools with $AMD coming into the GPU space with its chiplet capabilities bodes well for $AMD to grow its market share.