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How can this be happening with an AI revolution needing an almost infinite supply of high end graphics cards?
by andy_ppp 3y ago
How can this be happening with an AI revolution needing an almost infinite supply of high end graphics cards?
- drcode 3y agoNear as I can tell, because of the nature of the chip business, there is a limit on how fast they can pivot production towards a market segment that is seeing increasing demand (in this case, the AI chip business) So even assuming that there theoretically are enough purchasers of AI chips available to offset their other lost demand, it will take a year or two before they can fully serve these new customers and collect this revenue.
- andy_ppp 3y agoYeah I was thinking something along the lines of, we have factories setup to produce AMD CPUs on 4nm for 6 months, another setup for Apple etc. and if say Apple reduces its demand TSMC can’t magically turn the AMD or Apple (etc.) setups into Nvidia GPUs that quickly. Also NVidia probably benefits from some scarcity so it might not be worth their while to order more?
- _blz2 3y agoThey said AI chips are just 6% of the production output. They said the AI demand is not significant enough to offset the cyclical downturn in semis demand.