NVDA’s fat margins are under pressure

Posted: May 22, 2024

- Microsoft BUILD conference news: NVDA facing competition - Advanced LLM model (GPT4) runs at lower cost on AMD chips - NVDA's high margins make competitors more attractive - AAPL and GOOG may enter chip market - Apple building M2 Ultra for LLM inference - NVDA likely to feel pressure on margins - Position: sold NVDA calls at $990, break even at $1015 - Microsoft Build 2024 focused on integrating AI across all products - CEO Satya Nadella discussed partnerships with Nvidia and AMD - Microsoft's partnership with OpenAI and GPT-40 was highlighted - Azure AI Studio is now generally available - Copilot Studio allows for custom workflows - Copilot Team was announced with a focus on technology for empowerment



Summarized top reddit comments: - NVDA's margins are under pressure due to competition and limited capacity by TSMC - Google, Microsoft, and Amazon are building blackwell servers for their cloud services using AMD and NVDA chips - Power consumption and efficiency of NVDA chips are factors in long-term cost - Some believe NVDA's competitors are better but data centers continue to buy NVDA products - NVDA remains a top choice for cutting edge technology in the long term - Risky $7M investment discussed and supported by some commenters



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