NVIDIA’s $2 Million A.I Chip Eats Into AMD’s Microsoft A.I. Pie Worries Research Firm

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With the first quarter of 2024 over, analysts and research firms are out with their reports for the state of the semiconductor supply chain. The year has been marked with artificial intelligence dominating the conversation, and research reports from Keybanc and UBS are optimistic about the demand for A.I. products.

In its analysis, Keybanc shares that NVIDIA remains the industry's preferred A.I. provider, but higher prices have made its customers, such as Microsoft, shift their forecast to allocate more funds to the firm's products at the expense of its rival firms. UBS believes that the six biggest technology firms in terms of market value should generate close to half a trillion dollars in cash flow this year, keeping their valuations lofty and at high free cash flow multiples.

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AMD Might Bring In $1 Billion In A.I. Revenue During Q1 2024 Says Keybanc

With the first quarter now over, all attention is focused on the earnings season for technology names such as Microsoft, NVIDIA and AMD. These firms are key players in the A.I. industry, with the software segment in the industry made of firms like Microsoft and Facebook parent Meta accounting for the demand portion of the market and chip designers and manufacturers like Intel, NVIDIA and AMD accounting for the supply portion.

This bifurcation is at the heart of Keybanc's latest investment report, which covers the state of the A.I. market regarding AMD, NVIDIA, Microsoft and others. After running channel and supply chain checks, Keybanc believes that NVIDIA's premier A.I. product, the GB200 Grace Blackwell Superchip is seeing strong industry interest and could generate anywhere between $90 billion and $140 billion in revenue. This is based on an expected price