INTC offerings are mostly CPU and if NVDA is correct that solutions with AI are mostly GPU based, then INTC is screwed here. Note that NVDA stock guidance came from strength in data center. They are basically eating INTC breakfast, lunch and dinner here.
The world's $1 trillion data center is nearly populated entirely by CPUs today. And I -- $1 trillion, $250 billion a year, it's growing of course. But over the last 4 years, call it $1 trillion worth of infrastructure installed, and it's all completely based on CPUs and dumb NICs. It's basically unaccelerated.
In the future, it's fairly clear now with this -- with generative AI becoming the primary workload of most of the world's data centers generating information, it is very clear now that -- and the fact that accelerated computing is so energy efficient, that the budget of a data center will shift very dramatically towards accelerated computing, and you're seeing that now. We're going through that moment right now as we speak, while the world's data center CapEx budget is limited. But at the same time, we're seeing incredible orders to retool the world's data centers.
|
