Nvidia ( NVDA) supplier Mellanox Technologies ( MLNX) will lock up the high-performance computing (HPC) market before Omnipath from No. 1 chipmaker Intel( INTC) becomes a real threat, Summit Redstone analyst Srini Nandury said Tuesday. (6/21/2016).
Omnipath and Mellanox's Infiniband can both move data at 100 gigabits per second, but Mellanox plans to launch its 200 Gbps and 400 Gbps products in Q1, at least a year ahead of Intel's next Omnipath iteration, Nandury says. The products are used in data centers.
Intel launches new Omnipath versions in conjunction with its central processing unit (CPU) releases, so it will continually lag Mellanox, Nandury wrote in a research report. Intel's "threat (is) overblown," he says.
"Given Mellanox's impending first-mover advantage, we expect the company to lock up a majority of the HPC upgrades," he wrote. "Intel faces an uphill battle keeping up with the relentless pace of innovation driven by Mellanox, given that Intel's upgrade cycle is driven by the processor roadmap."
Nandury rates Mellanox stock a buy, with a 65 price target. He sees Mellanox's total addressable market hitting $15.9 billion in 2018, up 35% from $11.8 billion this year, growing at a 16% compound annual growth rate as the company further diversifies.
investors.com
(Whether Intel's Omni-Path initiative has grown by quantum leaps in the past three months remains to be validated. Intel is painfully quiet on this subject, although they seem to have their hands full at AAPL...)
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