On July 30th, Nvidia's stock price fell more than 7% to close at $103.73 per share, with a market value of $2.55 trillion, which is more than $700 billion lower than the June 18th high of $3.335 trillion. After the market closed, Nvidia's increase widened to around 5%.
On the news front, on Monday local time, Apple stated in a technical paper that the two artificial intelligence models supporting Apple Intelligence were pre trained on Google's cloud chips. The self-developed chip by Google is TPU (Tensor Processor), which is mostly used internally by Google and is not available for sale. This may mean that Google's self-developed chips will be more widely used, and large technology companies may actively seek alternatives to Nvidia GPUs (graphics processors) outside of Nvidia.
Nvidia's competitors have never stopped challenging it. Taking tech giant Google, which has independently developed AI chips, as an example, according to market research firm TechInsights, in 2023, among data center accelerator manufacturers, Google shipped 2 million TPU units, Nvidia shipped 3.8 million units, and other chips shipped 500000 units. By 2023, Google will have become the third-largest data center processor designer.
Apple is not the only technology giant adopting chips from Nvidia's competitors. On July 30th, during a conference call after AMD released its Q2 2024 financial report, AMD CEO Su Zifeng stated that Microsoft has increased its use of the MI300 chip as a computing power support for the GPT-4 Turbo and multiple Copilot services such as Microsoft Word and Teams. The MI300 series is an AI chip released by AMD at the end of last year, with the MI300X benchmarked against the Nvidia H100.
As Nvidia's main competitor in the GPU field, AMD is also seeking performance growth and hopes to challenge Nvidia in the AI field.
According to the recently disclosed financial report, AMD's revenue for the second quarter of fiscal year 2024 was $5.835 billion, a year-on-year increase of 9%. Among them, AMD's revenue from its data center division reached $2.834 billion, a year-on-year increase of 115%. Su Zifeng stated that after the delivery of AMD's accelerator MI300 chip for AI and high-performance computing, the chip's revenue exceeded $1 billion in the second quarter. It is expected that AMD's data center GPU sales in 2024 will be $4.5 billion, higher than the $4 billion expected in April this year.
Apple, which is focusing on edge AI, is also a chip manufacturer with A-series and M-series chips under its umbrella. According to Apple's previous introduction, Apple will use A17 Pro and M-series chips to drive Apple Intelligence. When introducing Apple Intelligence, Apple also stated that the model runs on servers built with Apple chips, emphasizing that privacy and security protection are at the same chip level as the iPhone.
In addition, Amazon is also developing its own chips. According to the latest news, last week Amazon conducted tests on a newly protected server design in a chip laboratory located in Austin, Texas, USA. Amazon's AI chip is installed on the server. Amazon's AI chips provide computing power for some of Amazon Web Services' artificial intelligence cloud services.
Previously, there were disagreements among institutions regarding the future trend of Nvidia's stock price. After the significant increase in Nvidia's stock price in June, BofA Securities analyst Vivek Arya believes that the sharp rise in Nvidia's stock price may be susceptible to profit taking in the short term, but any fluctuations may be short-lived. Some institutions are concerned that Nvidia's customer base is relatively concentrated and there may be pressure from competitors, which could lead to risks. A recent study by Bank of America Global stated that fluctuations caused by seasonal trends and other factors have led to an increase in short-term risks in the US stock market. Historical and seasonal trends pose greater short-term risks to the S&P 500 index, and the US stock market may stop rising and fall in the coming months.
On July 30th, several technology stocks also fell in the US stock market. Microsoft fell 0.89% and fell nearly 8% at one point after the market closed. At the close of the day, Amazon fell 0.81%, Tesla fell 4.08%, Netflix fell 0.7%, and AMD fell 4.5%. As of the close, the Dow Jones Industrial Average rose 0.5%, the S&P 500 Index fell 0.5%, and the Nasdaq Index fell 1.28%.