FuriosaAI Takes Its First Step to Challenge Nvidia's (NVDA) AI Chip Dominance
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
FuriosaAI may be new to the AI chip sector, but it has leadership with deep experience in the field. Founder and CEO June Paik previously worked at Samsung (SSNLF) and Advanced Micro Devices (AMD) before leaving to establish FuriosaAI in 2017. He believes the latest deal with LG AI Research 'signals that our product is ready for enterprise adoption.'
Can FuriosaAI Compete in the AI Chip Sector?
FuriosaAI is entering an already saturated market, meaning it has an uphill battle ahead of it. The company has to compete with Nvidia, which dominates the field of AI chips and servers with its graphics processing units (GPUs).
Other strong competitors in the field include AMD, Broadcom (AVGO), Arm (ARM), Marvell Technology (MRVL), and Super Micro Computer (SMCI). There are also rival startups trying to enter the space, such as Rebellions and Semifive, adding even more competition to the market.
What Is the Best AI Stock to Invest In?
The easy answer to this question is Nvidia, largely thanks to its strong grip on the AI chips sector. NVDA stock sports a consensus Strong Buy rating and a possible 8.76% upside. However, Broadcom and Marvell Technology also have Strong Buy ratings and significant upside potential.
Getting to AMD, ARM, and SMCI, each of these AI stocks have consensus Moderate Buy ratings. AMD and Super Micro Computer have price targets that suggest downsides, while Arm has a potential 3.5% upside.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
2 hours ago
- USA Today
Trump says he will impose 100% tariffs on semiconductors and computer chips
President Donald Trump said he plans to impose 100% tariffs on computer chips and semiconductors, with an exception for companies that have committed to building in the United States."We'll be putting a tariff, approximately 100%, on chips and semiconductors," Trump said at an Oval Office event on Aug. 6 with Apple CEO Tim Cook, who was visiting the White House to announce plans for an additional $100 billion in investment in the U.S. Trump said companies, such as Apple, that have committed to building in the United States would be spared from the tariffs. He did not provide details on when the tariffs would go into effect. "If you're building in the United States of America, there's no charge. Even though you're building and you're not producing yet in terms of the big numbers of jobs… there will be no charge.' The tariffs on computer chips and semiconductors could raise prices on goods such as personal computers, smartphones, electric vehicles, and video game April, Nvidia announced plans to manufacture its AI supercomputers entirely in the United States for the first time, committing to building its advanced chips in Arizona and AI supercomputers in Texas. The White House hailed Nvidia's decision as "the Trump Effect in action.""Onshoring these industries is good for the American worker, good for the American economy, and good for American national security," the White House said in a statement while announcing Nvidia's plans. Trump has currently placed tariffs on various sectors, including 50% on steel, aluminum, and copper, and 25% on imported automobiles. Dozens of countries are also facing country-specific tariffs first announced on April 2, dubbed as Liberation Day by Trump.
Yahoo
3 hours ago
- Yahoo
These are the top takeaways for investors from the latest high-profile earnings reports
The stock market has been buoyed by strong corporate earnings. Of the firms that have reported results, 82% have beaten estimates. Here are key takeaways for investors from recent earnings. Companies have reported mostly strong second-quarter earnings so far, but there are some specific takeaways investors should be aware of. So far, 82% of companies that have reported results have beaten estimated. According to FactSet, if that percentage holds, it will represent the highest percentage of quarterly earnings beats since the third quarter of 20221. Earnings will continue rolling in over the coming weeks, with tech titan Nvidia set to report at the end of August. Until then, here are some key insights from the last results: AMD & Super Micro: Trump's trade policy is hitting the semiconductor sector What happened: Advanced Micro Devices and Super Micro Computer both reported earnings for the second quarter on Tuesday, with mixed results. AMD beat on revenue, but missed earnings estimates slightly. The chipmaker posted adjusted earnings per share of $0.48, a hair below the expected $0.49 a share. Lisa Su, AMD's CEO, said the firm's AI revenue declined on a year-over-year basis largely due to US export restrictions, which have prevented AMD from selling its MI308 AI chip to China. Shares were down as much as 8% on Wednesday. Super Micro, meanwhile, missed slightly on both earnings and revenue. The chipmaker said revenue came in at $5.76 billion, below the expected $5.89 billion, and earnings per share came in at $0.41, below the $0.44 Wall Street expected. The miss was partly fueled by the impact of President Donald Trump's tariffs, Charles Liang, the CEO, said on a call with analysts on Tuesday. Shares of the chipmaker were down 17% after the results. What it means: AI chip manufacturers are caught in the crossfire of the trade war. That's expected to remain a key concern as the US irons out the details of its trade relationship with China. The US and China have until August 12 to strike a trade deal before higher tariffs kick in, another headwind that could rattle the market and semiconductor stocks in particular. "Industry-wide tariff impact is only now being felt and could result in headwinds for the entire semiconductor industry," Gadjo Sevilla, a senior analyst at EMARKETER, wrote in a note. McDonald's: US consumers are in a precarious position What happened: McDonald's beat on earnings and revenue expectations for the quarter, but voiced concerns about the health of lower-income consumers and the ability of Americans to keep spending. The fast food franchise said revenue came in at $6.84 billion for the quarter, above the $6.7 billion analysts expected. Earnings per share came in at an adjusted $3.19, above estimates of $3.15. "Re-engaging the low-income consumer is critical," Chris Kempczinski, the CEO, said on the company's earnings call, adding that low-income Americans were more likely to visit the chain than other income groups. "This bifurcated consumer base is why we remain cautious about the overall near-term health of the US consumer." What it means: Consumer spending is in focus for retail giants and for Wall Street, given the cumulative effects of inflation in recent years and Trump's tariffs. Economists say tariffs could stoke inflation, as companies can pass along the cost of import duties to consumers. For now, though spending remains fairly strong, even as concerns have risen recently around a pullback among both high and low-income households. Palantir: Hype for AI still strong What happened: Palantir blew past estimates for second quarter earnings. The data software firm revealed that its revenue surpassed $1 billion for the first time, reflecting a 55% year-over-year increase. Shares popped as much as 10% after its results, bringing the stock up 130% year-to-date. What it means: The AI trade is alive and well, with firms still benefitting from the hype for artificial intelligence. Wedbush Securities called Palantir the "Messi of AI" in a note to clients shortly after the firm reported earnings. In a separate note, analysts lifted their price target for the stock to $200 a share, implying 15% upside from current levels. "Palantir remains one of our top tech names to own in 2025 and this deal represents another opportunity for PLTR to capitalize on while continuing to generate unprecedented traction for its entire portfolio across the federal and commercial landscapes," analysts said. Microsoft and Meta: Mega-cap tech still dominates What happened: Microsoft and Meta both beat on earnings last week. Microsoft took in $76.4 billion in revenue and $3.65 in earnings per share, above estimates of $73.8 billion and $3.37 a share. The company also joined the $4 trillion club for the first time as its stock surged following its earnings report, with shares up 26% year-to-date. Meta, meanwhile, took in $47.5 billion in revenue and $7.14 in earnings per share, above estimates of $44.83 billion and $5.89 a share. The stock is up 27% year-to-date. What it means: Mega-cap tech is still dominating the market. Tech was best-performing area of the S&P 500 in July, with the sector up 5% in the month. The Nasdaq hit 14 record highs in July, causing Deutsche Bank to declare that "tech-ceptionalism" has resumed for the market. The strong outperformance of large-cap stocks accelerated, further widening the gap between small-cap peers. "We continue to favor US large cap Tech over its small cap counterpart, as it takes a highly speculative market (i.e. 2021) or Big Tech to fall out of favor (i.e. 2022, Q4 2024) for the latter to outperform," Nicholas Colas, the co-founder of the research firm DataTrek, wrote in a note. Read the original article on Business Insider Sign in to access your portfolio
Wall Street Journal
3 hours ago
- Wall Street Journal
Listen: How Magnificent Can the Magnificent Seven Get?
Six of the so-called Magnificent Seven companies have reported quarterly earnings, with only Nvidia, the most-valuable of them all, yet to release its results. Markets AM writer Spencer Jakab speaks with Heard on the Street's Asa Fitch about how much better it can get for the stocks harnessing AI-mania to propel the stock market. Asa, who also writes the Journal's new AI newsletter, says that the hyperscalers show no sign of slowing their furious pace of capital investment in infrastructure, but he cautions that continuing to top investors' lofty expectations is becoming more of a challenge.
