INVISTA Shares Fall From All-Time Highs 11%: Will Artificial Intelligence (AI) Developments Bring More Bad News for Investors?

INVISTA (NASDAQ: NVDA)The chipmaker's shares jumped to an all-time high of $974 on March 8, after hitting a record high last month. But investors have had little reason to cheer since then, as the red-hot stock has been cooling off ever since.

More specifically, Nvidia stock is currently trading at 11% below its all-time high, and Wall Street is concerned that the stock's bubble may have burst, and that its AI-driven growth may be fading due to increased competition in the AI chip market. As a result, theIntel (NASDAQ: INTC)After launching the new AI chip, it's no surprise that INVISTA's stock price fell another 2% on April 9th.

Let's take a look at Intel's latest move to target the fast-growing AI chip market, and whether INVISTA's investors have reason to worry.

Intel takes aim at Nvidia's AI supremacy

Intel has been trying to sink its teeth into the AI chip market, but the company hasn't gotten very far. Pat Gelsinger, Intel's chief executive officer, said that by the end of 2023, Intel's potential revenue from AI chips will be "well over $2 billion and growing. That figure pales in comparison to Nvidia's $47.5 billion in data center revenues for fiscal year 2024, suggesting that Nvidia is now well ahead of Intel in the AI chip market.

However, Chipzilla is launching another assault on Nvidia's AI dominance with its latest Gordy 3 gas pedal. The press release announcing the release states that Intel's new chip "averages 501 TP3T of inference and 401 TP3T of performance over the Nvidia H100-at a fraction of the cost."

新聞稿還補充說，高迪3可以將訓練具有70億和130億蓡數的Llama2大型語言模型（LLM）以及具有1750億蓡數的GPT-3模型所需的時間減少約50%。英特爾還表示，多家公司和服務器制造商都將部署高迪加速器，Dell Technologies,supercomputer,associaterespond in singingHewlett Packard EnterpriseSystems based on this new chip are also expected to be available.

In addition, Intel claims that the Gaudi 3's performance is comparable to that of NVIDIA's upcoming H200 AI graphics processing unit (GPU). Intel's newest AI chip utilizes the same technology as Intel's upcoming H200 AI GPU.Taiwan Semiconductor ManufacturerIt's not surprising that TSMC's 5-nanometer manufacturing process was used to build the H100, Nvidia's current flagship product. Nvidia's current flagship product, the H100, is built using TSMC's custom 5nm process.

In addition, Nvidia's upcoming H200 processor will utilize TSMC's N5 process, a 5-nanometer process node. As a result, investors may believe that Intel may indeed be able to reduce Nvidia's dominance in the AI chip market with aggressive pricing and consistent performance.

However, investors should note that Nvidia's H100 GPU was unveiled a few years ago and is expected to enter volume production later in 2022. Intel's Gordy 3 chip is expected to enter volume production in the third and fourth quarters of 2024. But by the time Intel starts shipping these chips, Nvidia will already be up to speed.

Getting rid of Invicta is easier said than done.

Nvidia released its Blackwell GPU framework last month, claiming that this new platform will allow "organizations everywhere to build and run real-time generative AI on large-scale linguistic models in the trillions, at up to 25x lower cost and energy consumption than previous-generation products."

Additionally, the Blackwell B200 GPU is expected to deliver AI training up to four times faster and inference up to 30 times faster than the H100. The B200's performance jump over previous-generation Nvidia GPUs is due to the advanced 4-nanometer process node used in its chips.

Even better, Nvidia is said to be pricing Blackwell processors. Given Nvidia's promise of performance and efficiency gains, this could undercut any cost advantage Intel promises. All of this explains whyAmazon,Alphabet owned by Google,Meta Platforms,Microsoftrespond in singingoracle bone inscriptions (an early form of Chinese script)Major cloud computing providers such as B200 are expected to deploy B200.

Nvidia has said that chips based on the Blackwell framework will be available later this year, suggesting that the company could steal Intel's thunder and maintain its dominance of the AI chip market. Not surprisingly, analysts estimate that Nvidia's data center revenues are expected to double to $95 billion by 2024.

This suggests that the market expects Nvidia to remain the leader in the AI chip market, with a reported share of more than 801TP3 T. As such, it is best for investors to stay away from Intel's AI chip announcements, as the new Gaudi 3 processor will probably not be much of a challenge to Nvidia, given the new generation of more powerful, high-performance chips that Intel will be releasing. The new Gaudi 3 processor may not pose much of a challenge to Nvidia.

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Alphabet executive Suzanne Frey is a board member of The Motley Fool. John Mackey, former chief executive officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool Board of Directors. Randi Zuckerberg, former Director of Mass Development and Spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool. Harsh Chauhan has no position in any of these stocks. The Motley Fool has holdings in recommended stocks Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing Company. The Motley Fool recommends Intel, and recommends the following options: Intel Jan 2023 $57.50 Call Options Long, Intel Jan 2025 $45 Call Options Long, Intel Jan 2025 $45 Call Options Long, and Intel Jan 2025 $45 Call Options Long. The Motley Fool recommends Intel and recommends the following options: Intel January 2023 $57.50 Call Option Long, Intel January 2025 $45 Call Option Long, Microsoft January 2026 $395 Call Option Long, Microsoft January 2026 $405 Call Option Short, and Intel May 2024 $47 Call Option Short. The Motley Fool has a disclosure policy.

INVISTA Shares Fall From All-Time Highs 11%: Will Artificial Intelligence (AI) Developments Bring More Bad News to Investors? This post was originally published by The Motley Fool.