The discussion addresses how AMD (NASDAQ: AMD) and Intel (NASDAQ: INTC) are positioning themselves in comparison to NVIDIA (NASDAQ: NVDA). AMD is seen as a strong second in the AI chip market, while Intel’s claims to compete are met with skepticism due to its recent struggles. The conversation highlights AMD’s capability to catch up with NVIDIA, Intel’s potential shift towards AI chips for consumer devices, and the impact of electricity availability on the growth of these companies, especially considering the high energy demands of technologies like blockchain mining.

Transcript:

Now you’ve got two companies who say, well, look at us, look at us, you know, we’re the next NVIDIA.

These are used to be big companies that were famous.

Now they’re still big, but not viewed as, they’re not viewed as successful compared to NVIDIA anymore.

The first one is AMD.

AMD, I think investors still believe, has a claim to being a solid second place behind NVIDIA.

The stock trades that way, if you look at the market cap of the stock.

But recently, the people at Intel came out and said, well, you know, we can do it too.

No one believes that. I don’t know why they bothered to say it.

But what do you think?

I mean, it seems that there’s a big enough market growing fast enough so that AMD can be very successful at this.

Yeah, I think they absolutely can.

And they have the designers and the engineers that can get chips that are up to speed and commiserate to NVIDIA’s newest product.

It’s almost… It’s an odd dichotomy that Intel’s on the outside looking in.

Consider that for decades they were Moore’s Law came out of there.

And I mean, for decades they were the trendsetter and everybody so anxiously looked forward to the next chip.

And I think that they have the wherewithal and they have the talent to do it.

I think they’re just horribly behind the curve.

Well, and the stock says that, too.

Intel’s been considered just a huge disaster for a couple of years.

And I don’t think anybody’s buying the fact that just because the CEO says that they’re in the AI chip game, that means that they are.

Yeah, and it’s like… Maybe their bread and butter was always chips for PCs and chips for laptops and that kind of function and those kind of processors.

Now, maybe they’ll come up with the kind of AI chip that will go in your next Asus laptop or your next HP laptop or whatever you use.

And maybe that’s the angle they’re going to try to hit because like we’ve discussed with Apple recently,

They’re going to have to put some sort of AI format into the iPhone to have any relevance.

So maybe that’s the angle that Intel takes because they do have a big inboard, inbound path to PCs and laptops.

One of the things that people don’t discuss much when they talk about these stocks is that the sales that they’re going, the revenue is going to continue to rocket upward.

But there’s something outside their industry that could slow that down. And that is the availability of electricity.

Absolutely. And I think that could be a driving force because the demands put on the grid, not just by that, but think of the demands put by blockchain mining on the grid.

You know, that’s incredibly strong.

And so I know that they’re developing, you know, abilities to to have cooler markets, you know, cooler fabs that are in water and underwater.

And so, yeah, I think it’s going to put a lot of pressure on the grid and they’re going to have to find a way around that.

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