Nvidia (NVDA) and Advanced Micro Devices (AMD) showed off their latest generation of AI chips – Nvidia’s Ruben and AMD’s MI325X accelerator – as the chip giants accelerate into a new product cycle. I/O Fund Senior Technical Analyst Beth Kindig joins The Morning Brief to comment on the market share these chip leaders have the opportunity to capture as they roll out more of these products in the race for more and tighter to the AI.
“So in this AI battle, this competition between AMD and Nvidia, what we’re seeing is something that’s never been done before at the data center level,” Kindig told Yahoo Finance. “Basically they’re going to release them every year, like you said, there’s going to be Blackwell by the end of this year, Blackwell Ultra, Ruben, Ruben Ultra. And within that there’s additional variants.”
Watch Yahoo Finance’s full interview with Nvidia CEO Jensen Huang.
For more expert insights and the latest market action, click here to watch this full episode of Morning Brief.
This message was written by Luke Carberry Mogan.
Video transcription
Well the chip wars are heating up once again this time, A MD and NVIDIA both pushed higher after announcing new next-generation AI chips over the weekend, Nvidia CEO Jensen Wong touting a new chip called Ruben, which it plans to release in 2026. MD announces next-generation AI chip for laptops with its CEO Lisa Su saying AI is the company’s number one priority read more on what this means for the space and some of the investment opportunities that we want to bring Beth Kendig, I have a fund principal technical analyst, Beth, it’s a pleasure to talk to you here.
First, as we see some of that enthusiasm play out once again in market action early this morning, both A MD and NVIDIA shares are pushing higher.
What do you think about the announcements that we received over the weekend and where that really tells us that we’re still at, it seems to be very early in the cycle.
Yes, beginning of cycle is a great way to put it.
Thanks for inviting me a few weeks ago.
We wrote that, in a Forbes analysis, the product roadmap is the first line of defense. It’s really important to understand that by accelerating the product release cycle from two years to one year, companies that were previously very cyclical, uh, had to be very careful about your timing are now becoming more secular.
So in this AI battle, this AI competition between A MD and NVIDIA.
Um, what we’re seeing is something that’s never been done before.
At the data center level, they’re basically going to release them every year.
As you said, there will be Blackwell by the end of this year, Blackwell Ultra Ruben Ruben ultra.
And within that there are additional variants within Blackwell, there is AB 100 AB 200 A GB 200 NVL 72.
So even during this product release cycle each year, additional variants appear.
This means investors need to understand that previously cyclical companies are becoming more secular.
And then when you add the software layer, it’s really going to deliver long-term gains for you.
Yeah.
And that certainly reflects the tone we heard at Computex from NVIDIA CEO Jensen Huang, where he was talking about speeding up everything.
And so how does the mindset and the operation of accelerating everything translate into the market cap and the valuation of the company from your point of view and sort of an acceleration to where this could continue to evolve.
And this astronomical growth that we continue to see, we have a $10 trillion market cap target for NVIDIA by 2030.
And I’ll be honest and tell you that I think that’s too low.
Um The reason is we’re already seeing about 60,000 US GPs in the data center.
Um, Jensen Wang said on stage that we will reach a million GP U data center at some point.
So 10 trillion might even be too low.
And here’s why a generation Hopper gave us a 1.5 trillion boost.
So now we have four more generations that they’ve brought to you over the next 4 to 5 years.
Now you have to add software and you have to add something like the Omniverse platform, that’s how all robotics will probably be developed, a virtual monopoly of robotics, because it’s a company of simulation from gaming sectors.
They basically have an engine and a software platform that will enable robotics, which is so far ahead that other people, other companies are going to have a hard time competing and that’s already coming, you know, from the simulation avenues.
So when you combine now you have to think about software, you have automotive, think about robotics, think about A a and that’s already pushing us, you know, easily pushing us beyond 10 trillion here 2030 of course, but just quickly on, what kind of market share are we talking about here?
Because I mean, there’s a competitive landscape where we have to imagine that none of the other chip companies are going to fall into the ditch.
I estimate that A MD is capable of taking between 10% and maximum 20% of the market.
This is based on gaming competition.
These two companies have owned Intel for some time, they are well over 20%. Intel is an easier competitor than NVIDIA.
I think NVIDIA is clearly going to be a tougher competitor for an MD.
So I would say, you know, 10 to 20% A MD to GP US when you look, Beth, at least at Nvidia’s current valuation, the massive upside that we’ve seen in the short term.
See, I, I know you obviously see a huge opportunity here over the next few years, but in the short term, do you see the fact that the valuation could be stretched?
This is probably the most important question, which isn’t: where will NVIDIA be in 2030?
But do we buy now?
And it’s not really a valuation issue because we’re talking about a company whose bottom line grew, you know, 6,700%.
So the valuation is actually quite reasonable because of all these increases and overruns, what NVIDIA will need is broad market participation.
And if you look at the market as a whole, things are a little weak.
So when is the best time to buy a stock, in our opinion, when the broad market is participating in it, meaning can NVIDIA hold or can it wait in a broad market, sell?
Can it last?
And that’s the question that technology investors need to understand: Sometimes it has nothing to do with the stock, it has nothing to do with the individual management team, or with these amazing fundamentals, or with the valuation which we describe as strangely low.
It has to do with the market and general sentiment.
Alright, Beth Kay, great to have you.
We hope to see you again soon on Yahoo Finance.
I will find a senior technical analyst.
Thank you very much, Beth.
THANKS.