Vivek Arya, PhD’s Post

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Managing Dir, Senior Analyst, BofA Securities

Semis success = Scale + Incumbency, thanks to Joe Kernen and Kelly Evans on CNBC for an interesting discussion on the evolving AI landscape.

Interesting comparison with Cisco. There are lots of hypes about AI now, as were about Internet in the late 90s. Generative AI is still a very immature technology with lots of growth ahead ( hopefully). The roadkill of the Internet boom were the likes of Lucent and Sun Micro. Sun Micro was providing servers made from their own silicon ( SPARC CPUs ) and OS ( Solaris). They got steamrolled by cheaper x86 running with open source Linux. Lucent had too much legacy circuit switch business, to be a viable contender in packet switching then. The collapse of dotcom bubble in 2000 and emergence of competition from Arista , Huawei and cloud giants building their own switches basically made Cisco stock dead money for last 2 decades. In case of Nvidia, competition is already there - AMD with Instinct GPUs, Cerebras, Amazon with Tranium/Inferencium, Google/Broadcom with TPUs. It will depend on how much of the halo Nvidia can maintain over the long run.

“That was like a symphony”. Hard to beat that compliment. Awesome Vivek!

Ekta Sahni

Global Managing Director - Data Management & Governance || Data Privacy expert || Banking expert || Board Member

12mo

insightful as always!

Steven Ward

Assistant Vice President, Wealth Management Associate

12mo

Great discussion

Kumar Cidambi

CFO, Center For Network Therapy Visit & Follow our Company page: "Center For Network Therapy"

12mo

Awesome stuff, Vivek!

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