Poolside Notes -- Clearing Out The In-Box -- Part 1 -- June 13, 2023

Locator: 44930TECH. 

The big story today: AMD announces a new chip to take on Nvidia. And this was a huge story. Reuters reports it here.

After the introduction of the new chip, investors reacted:

NVDA joined the $1 trillion club today.

In a sidebar to a reader, my not-ready-for-prime-time comments:

This was the big tech story today.

“Everybody” was anticipating AMD’s new GPU chip which would compete with the leader in this area of AI technology.

Chip announced.

At close:

    NVDA up $15, up 4%.

    AMD down about 4%, down $5.

Numbers rounded.

So, what happened?

When Apple announces something, generally available immediately.

New AMD chip will be "sort of available" at the end of this year, 2023; won't be widely available until sometime in 2024.

That’s a year.

A year in chip development is a lifetime cycle for some chips. NVDA won’t be sitting still for one year, nor will AAPL.

In other words, too little too late? The “too little”:

The quotes reported in the press by AMD CEO sounded weak.

The chip will be marketed as an “accelerator,” according to AMD.

AMD has been seen as weak for quite some time; today’s stock market action suggested folks who understand this technology (I don’t understand this technology) see AMD as no threat to NVDA.

I have healthy positions in both AMD and NVDA but this tells me where to allocate NEW money when investing in this sector.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. 

Again, all my posts are done quickly. There will be typographical and content errors in all my posts. If any of my posts are important to you, go to the source.