Jensen Huang, CEO of Nvidia, shows off the Nvidia Volta GPU computing platform at his keynote address at CES in Las Vegas on January 7, 2018.
Rick Wilking | Reuters
from nvidia The gain has boosted some semiconductor names in trading on Thursday, particularly companies that specialize in AI-powered chips, while pushing shares of other chipmakers lower, including Intel and Qualcomm.
Nvidia shares are up 25%, along with a notable 9% gain in Nvidia shares. advanced micro devices. Both Nvidia and AMD specialize in so-called discrete or standalone graphics processing units. Meanwhile, shares of mainstream computer chip companies fell. Intel shares fell about 6% in morning trading, while Qualcomm, which makes mobile chipsets, fell about 1.3%.
The wide range of price actions suggests a shift away from the focus on traditional computer chips and towards GPU manufacturers. GPUs have enjoyed growing enterprise demand as startups and established tech companies scramble to build AI platforms. GPUs are the “brains” behind large language models and other AI technologies, helping to power OpenAI’s ChatGPT and Google’s Bard.
“Instead of millions of CPUs, it will have a lot less CPUs, but they will be connected to millions of GPUs,” Nvidia CEO Jensen Huang told CNBC.
Historically, the opposite has been true. The potential investment may be flying away from the CPU names and towards Intel and AMD.
Taiwan Semiconductor Manufacturing Company shares also rose nearly 11%. TSMC is a key part of the manufacturing process for many semiconductor companies that design their own chips but can trust TSMC to handle the delicate and technical manufacturing process.
Wonderful and broadcom, which rose 2% and 3% respectively, benefited from their exposure to cloud computing and potential AI applications. Marvell partners with companies including Google, Goal and Microsoft; Broadcom has been developing technologies for link AI supercomputers together.
He VanEck Semiconductor IndexA basket ETF of chipmaker names, including Nvidia and Intel, rose 6.4% in Thursday morning trading.
Trading activity for Nvidia shares also grew on Thursday. Just seven months ago, Nvidia closed with a two-year low of $112. But on Thursday, in addition to breaking its all-time intraday high, more than $15 billion worth of Nvidia stock changed hands.
And in the first 18 minutes of trading on Thursday, chipmaker shares had already surpassed their full-day average volume.
— CNBC’s Kif Leswing and Robert Hum contributed to this report.