Locator: 49516MAG7.
Add this post to this blog.
There's no way around it.
There's a reason the "Mag 7" are the "Mag 7."
The newest wrinkle: TPUs.
Jargon / chips:
- CPUs: general-use chips that "run" the device (desktop computer, laptop, tablet, wearable).
- GPUs: optimized for specific functions, but not AI; working alongside CPUs
- NPUs: optimized for specific functions, specifically AI for "edge" devices.
- TPUs: optimized for AI in the cloud.
For investors:
- CPUs are indispensable but this is not where the investment action is
- GPUs is where the action is -- Nvidia; AMD has pivoted from emphasis on CPUs to emphasis on GPUs;
- NPUs: pretty much an "edge device" chip; android vs Apple
- TPUs: a "cloud device" chip;
TPUs: NPUs and NPUs are both involved in AI, but NPUs are "edge" chips; TPUs are "cloud" chips
TPUs will gradually replace GPUs for AI use in the cloud but the transition will take time
AI prompt:
I assume Google designs, markets, sells their TPUs, but who actually does the manufacturing -- the fab?
Answer: link here.
There's a reason the "Mag 7" are the "Mag 7."
Read this answer again (same answer as at the link above):
There's a reason the "Mag 7" are the "Mag 7":
- why TSMC and not Samsung or Intel? Answered above.
- TPUs: will eventually replace GPUs for AI in the cloud.
- only company that matters right now when it comes to TPUs: Google
- Every generation of TPU has been fabbed at TSMC.
My only question .... and it's another dig at BRK-B: where were Charlie Munger and Warren Buffett these past ten years?
And, again, each of the Mag 7 has their own niche.
Jim Cramer has a segment "am I diversified?" which I think is incredibly corny. But perhaps not.
I could argue that if one has a portfolio of five stocks and the five are in the "Mag 7" one is still diversified.
Break / Break -- new subject but closely related:
AI prompt:
Investors need to ask this question and/or understand the answer?
AI prompt:
Have large data centers (LDCs) become "the cloud" for all practical purposes?
Answer: link here.
