Does Broadcom's AI Event Spell Trouble For Nvidia Stock? (AVGO & NVDA)

This video from Chip Stock Investor dives into Broadcom's big strides in AI infrastructure chips, focusing on its custom silicon technology developments for customers like Google and Meta.
Broadcom’s biggest customers are scaling up their data centers with XPU clusters for AI inference, and Broadcom is projecting the potential to scale to over 1,000,000 XPUs in time. Nick and Kasey also compare Broadcom's approach to Nvidia's GPUs used in AI training, highlighting their growth as leaders in the AI market segment by combining chip and hardware design with a software stack.
The video explores the differentiation between Broadcom and Nvidia, especially focusing on the difference between the AI training market dominated by Nvidia, and the emerging AI inference market that Broadcom's efforts are taking on.
Stay tuned with our next video on some of Broadcom’s recent moves in software as it shuffles around its massive acquisition of VMware, as well as an earnings update on Aehr Test Systems.
👉👉Want more Chip Stock Investor? Our membership delivers exclusive perks! Join our Discord community, get downloadable show notes, custom emojis, and more. Become a true insider - upgrade your experience today!
Join at KZbin: / @chipstockinvestor
Join on Ko-Fi: ko-fi.com/chipstockinvestor 🔥🔥🔥
If monthly membership isn't your thing, don't worry, you can purchase our show notes in our Ko-Fi shop. ko-fi.com/chipstockinvestor/s...
If you missed our Semiconductor Industry Flow 2024 and chip industry manual, you can purchase it here:👉 ko-fi.com/s/90c74a988a. Get your investment journey off on the right foot to kick off the new year.
If you missed our Cybersecurity Industry manual for 2024, you can purchase it here: ko-fi.com/s/0a436c7c8
Other vids to check out:
• Broadcom Stock (AVGO) ...
• Is Broadcom (AVGO) Sto...
• Are Nvidia's New Chips...
• BEFORE Generative AI W...
Check us out on our website: chipstockinvestor.com
We use data, charts, and KPI's from our friends at Main Street Data. If you would like to check it out and subscribe to a premium membership here is a link that will get you 10% off👇
mainstreetdata.com/subscripti...
Find this episode and more on Spotify Podcasts: open.spotify.com/show/4QSHBYl...
You can also find us on Apple and Google Podcasts!
Chapters:
00:00 Introduction to Broadcom's XPU Clusters and AI Infrastructure
01:15 Deep Dive into Broadcom's Semiconductor Segment
03:32 Exploring Broadcom's Custom Silicon and AI Infrastructure
06:34 Understanding Power Consumption and Total Cost of Ownership
07:33 The Future of Data Centers: AI Training vs. AI Inference
13:44 Broadcom's Revenue and Market Strategy
Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal.
#nvidia #broadcom #GPU #XPU #genai #semiconductors #chips #investing #stocks #finance #financeeducation #silicon #artificialintelligence #ai #financeeducation #chipstocks #finance #stocks #investing #investor #financeeducation #stockmarket #chipstockinvestor #fablesschipdesign #chipmanufacturing #semiconductormanufacturing #semiconductorstocks
Nick and Kasey own shares of Broadcom and Nvidia

[@jeffj8825]

I hold a nice portion of broadcom. Fantastic dividend growth stock too

[@elroy1836]

Excellent, as usual. Be Well !!!

[@MatthewMS.]

Nothing spells trouble for Nvdia stock

[@eversunnyguy]

All this is great...Chips, XPUs etc...but who will do the training ? Who will provide data from various industries ? Who will do the inference ? Which software firms (and stocks 🙂) will be involved in this crucial piece that makes AI possible. Would love to hear your commentary on this some day.

[@asafgr]

Thanks! Great video!

[@user-sm9ms6yw9p]

Thanks you!💯

[@shefudgrupa]

Great video about an under the radar event. However, maybe I understood you wrong, but at least Google's TPUs are used both for training and inference. excluding the software stack TPUs are in-place replacement for GPUs.

[@chipstockinvestor]

True, but probably not the most intense AI systems are being trained. This brief PR piece is high-level, but there are enough tidbits here to see that the TPU is far behind the training heavylifting of Nvidia's top systems. Which explains why Google continues to be a top Nvidia customer. cloud.google.com/blog/products/ai-machine-learning/introducing-cloud-tpu-v5p-and-ai-hypercomputer

[@shefudgrupa]

@@chipstockinvestor indeed, at least judging from MLPerf training submissions, Google does not show off large LLMs on TPUs (except one example that is also rather poor compared to Nvidia, but still better than Gaudi2)

[@chipstockinvestor]

@@shefudgrupa absolutely, but who knows what they're planning. Maybe later gens of those TPUs can do more heavy lifting. But as of now, it appears to be for LLM fine tuning and basic inference.

[@cq2811]

Hey guys, please could you look deeper into Okta and F5?

[@Jai-qf8lw]

Good shot third customer I think is OpenAI, Tencent, Apple, or Tesla

[@1ckt157]

I'm an Engineer at Broadcom, gotta say we are gonna dominate :)

[@chipstockinvestor]

Y'all are already! Keep up the stellar work!

[@jeffj8825]

Do you think broadcom will continue to grow well, while nvidia is still such a hot stock in the AI market? I understand they are different. Just curious how it could affect the other?

[@valueinvestor8555]

Alphabet, Intel and Qualcomm just announced an AI alliance ("UXL foundation") and want to develop a software suite that allows AI programs to run on different kinds of AI chips from different manufacturers. This seems to be an equivalent to Nvidia's Cuda!?

[@lc285]

Intel and Broadcomm are manufacturers which gives them an advantage against others who rely on manufacturers to make their products, ie., Nvidia?

[@valueinvestor8555]

@@lc285 Nvidia relies on TSMC which is top notch at the moment and maybe for the next years as well. But the main risk is that their most advanced plants are in Taiwan. TSMC will produce for anyone if you are big enough customer too be able too book their limited production capacities.

[@user-xg2co9fh2j]

Can you please do an update on AEHR? I know that’s not related to today. But would appreciate your input.

[@chipstockinvestor]

There's an update on the community board

[@caffeinej2691]

@@chipstockinvestorwhat’s the community board?

[@gzhang207]

The XPU switch looks to function the same role as NVLink.

[@chipstockinvestor]

Could be, but it's proprietary to that XPU customer, so not a true NVlink competitor

[@gzhang207]

Don’t think there is a standard. Without the inter GPU or XPU data transfers, the PCIe becomes the bottleneck for large scale ML models. For example Intel may claim better performance on 7B parameters model, but Nvidia solution is scalable to 100B parameters.

[@randomsitisee7113]

Nvda is building a warp drive using its C100

[@Jai-qf8lw]

Yay!

[@NGh_teh]

Hello Guys. can you comment on AEHR test systems again? They just cut their projection again. Is it still a buy?

[@chipstockinvestor]

there's a comment on the community board

[@markvanbrunschot1435]

AEHR tommorow?!

[@eversunnyguy]

My understanding is Broadcom is a fabless company that makes XPUs. So which Fab companies make XPUs ? TSM ?

[@chipstockinvestor]

These are two older videos that break down the business model a bit more. Broadcom does a little in-house manufacturing, and primarily uses TSMC for the rest. kzbin.info/www/bejne/gqbOamV3p99kmtk kzbin.info/www/bejne/b3XPioCcpZichJI

[@eversunnyguy]

@@chipstockinvestorThanks.

[@chrisveer9174]

Why has AEHR dropped almost 26% today? Couldn't find any news on the internet so far.

[@gopalkc3514]

I am looking for answer too.

[@chipstockinvestor]

Check the community board on our main page.

[@Jai-qf8lw]

The more HBM’s you add the larger the model with more parameters you can run

[@Jai-qf8lw]

A 12-stack HBM3 accelerator offers 50% more memory capacity and 25% higher bandwidth compared to NVIDIA's flagship Blackwell B200.

[@haseebgatsby]

There is an issue with using COWOS-L to having 12 stacks you need three garguntum chips which causes NUMA related weirdness... There is also an issue with yields one defect and the entire gargantuan chip is lost.

[@user-ky6yb3sf1s]

What happened to the audio? Sorry but words separation sounds like a synthetic voice of a robot 🤖

[@user-ky6yb3sf1s]

Nvidia will be the next Nvidia!

[@jeffrose5622]

NVIDIA will be a $1,500 stock in 2024 regardless of if you buy it or not, so you might as well but it and get a 50% increase on your investment.

[@hubertusgumpert8463]

smci you missed one of the best stories , i know you dont change your mind, bad luck

[@jacqdanieles]

So where does smci go from here?