As the 51st international Consumer Electronics Show (CES), the worldwide tech event of the year that grandstands the latest and greatest next-gen innovations in the marketplace kicks off, MKM analyst Ruben Roy shares his initial insights on two leading chip players: Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA).
From Roy’s eyes, both data coupled with the intelligent use of data stand out as fundamental topics in the conference to date spanning a substantial assortment of end user applications. These applications include the likes of self-driving vehicles, smart cities, augmented reality (AR) as well as virtual reality (VR) applications, virtual assistants, and intelligent applications. Roy is not surprised that a lot of the initial company reveals circle automotive market buzz.
Nvidia rolled out several announcements at the electronics show in its CEO Jensen Huang’s two hour keynote speech. In the presentation, the company’s leader revealed customers will receive the first samples of the chip giant’s DRIVE Xavier system on a chip (SoC) throughout the first quarter, with plans for production afterward in 2018. Coupled with the Xavier news, the company likewise pointed to new extensions of various automotive-correlated alliances with companies ranging from Volkswagen to Uber to ZF to Baidu to Aurora.
Additionally, the tech player’s DRIVE platform by the NVDA team’s assessment stands as the “first functionally safe AI based self-driving platform” in the world, with the “ecosystem” garnering 320 partners, a boost from the 225 seen at this stage one year prior.
“While the Xavier SoC and related autonomous machine applications were in focus, NVDA remains optimistic about its gaming prospects, noting that the global PC gamer population of roughly 1 billion is expected to grow to approximately 1.4 billion by 2020,” writes Roy. Another takeaway for Nvidia is a new collaboration with MXIM NVDA on autonomous driving and safety applications, where MXIM’s new 6Gbps SerDes technology will offer a foundation for NVDA’s DRIVE Pegasus platform.
Meanwhile, the analyst shines light on AMD, which announced its “computing and graphics products road-map” for the year. Kicking off its “CES participation,” AMD talked to “a number of important announcements,” the analyst underscores from Ryzen desktop processors set to integrate Radeon Vega Graphics; more insights into the bigger scope of the road-map of Ryzen Mobile processors, with these solutions anticipated to be set loose into the market in the second quarter; a first glance at performance metrics for the forthcoming 12nm 2nd generation Ryzen desktop CPUs, primed for an April launch and already being sampled present-day; and the news of AMD’s first ever 7nm product: a Radeon Vega based GPU crafted just for machine learning applications.
“As expected, INTC formally launched new 8th generation Kaby Lake mobile processors which include discrete AMD graphics processors. AMD’s product road-map ambitions and recent execution are encouraging. We do, however, continue to await broader customer commitments,” Roy contends.
Though the analyst remains sidelines on both chip giants, Roy’s expectations show he is far more positive on AMD than its rival Nvidia. Keep in mind, the analyst reiterates a Neutral rating on AMD with a $13 price target, which implies a just under 9% upside from current levels, and maintains a Neutral rating on Nvidia with a $186 price target, which implies an almost 16% downside from current levels. (To watch Roy’s track record, click here)