然而，英伟达(NVDA.US)和AMD(AMD.US)的股价均下跌，为该芯片指数中最大的两个落后者。英伟达的股价下跌了2.3%，AMD下跌了2.8%。Analysts point out that Wall Street is focusing on the demand for ASICs (Application-Specific Integrated Circuits) by large Technology companies, which may be one of the reasons for the decline in NVIDIA Stocks. In the coming years, custom chips will gradually take market share from expensive GPUs in the application of Generative AI.
Broadcom's recent optimistic forecast about the potential of AI over the next three years has sparked a strong reaction in the market.
On Friday, Broadcom (AVGO.US) achieved a historic single-day increase in its stock price, rising over 24%. Meanwhile, the PHLX Semiconductors Index also rose by 3.4%.
However, the stock prices of NVIDIA (NVDA.US) and AMD (AMD.US) both fell, making them the biggest laggards in the chip index. NVIDIA's stock price dropped by 2.3%, while AMD fell by 2.8%.
Mizuho analyst Jordan Klein pointed out that Wall Street is focusing on the demand for ASICs (Application-Specific Integrated Circuits) by large Technology companies, which may be one of the reasons for the decline in NVIDIA Stocks: "In my view, custom chips will rapidly gain market share from GPUs each year, although GPUs will dominate for training purposes."
The rise of ASICs challenges the dominance of GPUs.
Broadcom previously predicted that the potential market for fiscal year 2027 will reach between 60 billion to 90 billion dollars, based on its current large-scale customer base.
Klein pointed out that Wall Street is paying attention to the demand for ASICs (Application-Specific Integrated Circuits) from large technology companies, which may be one of the reasons for the decline in NVIDIA stocks.
He stated that in the coming years, custom chips will gradually capture market share from expensive GPUs in the applications of generative AI. Although GPUs will continue to dominate AI training, the rise of ASICs has raised questions for investors about whether companies like Meta Platforms Inc. (META.US) and Alphabet Inc. will shift towards ASICs.
Klein further stated that some investors may choose to sell NVIDIA stocks in the short term to strengthen their Hold Positions in Broadcom. This shift reflects market confidence in Broadcom's future growth potential.
Ben Reitzes, an analyst at Melius Research, believes that Broadcom's comments are Bullish news for all AI semiconductor and networking companies, as this indicates that large companies will continue to invest in the AI field.
Broadcom's forecast not only benefits itself but also drives up the stocks of other companies. The stock price of Marvell Technology Inc. (MRVL.US) rose 10.8% on that day, and the stock price of Arista Networks Inc. (ANET.US) also increased by 5.1% due to optimistic comments about AI networks.
Reitzes pointed out that Broadcom's outlook suggests that the growth pace of AI networks will outstrip that of custom silicon, further boosting Arista's market performance.
In the future, as large companies continue to increase their investments in AI, the competition between custom chips and GPUs may become even more intense.
This article is reproduced from "Wall Street Watch", author: Zhang Yaqi; Zhitong Finance editor: Yan Wencai.
