Semiannual Top 500 Supercomputers List Highlights Share Gains for AMD and NVDA - BofA Securities

BofA Securities analyst Vivek Arya reiterated Buy ratings and "Top Compute Picks" on NVIDIA (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD) after Top500.org released the 58th edition of its semi-annual Top 500 supercomputers list yielding 4 key takeaways:

1) compute perf. of Top 500 +25% YoY to over 3 exaflops
2) 5 more systems using accelerators (up 3% HoH/2% YoY) with NVDA share commanding at 95%
3) AMD gained solid 480bp of CPU share HoH to 14.6%, and now powers 4 of top 10 systems (more than INTC, powering 2, for first time ever)
4) global supercomputing “arms” race between US, China, Europe, Japan (retained #1 system position with the Fugaku supercomputer for the 4th consecutive list) continues to be positive for top compute picks NVDA/AMD

The analyst stated "The maturation of Moore’s Law/serial computing is shifting more workloads to parallel computing, implemented with separate co-processor/accelerators such as GPUs, custom chips (ASIC) and programmable chips (FPGA). As of November 2021, 150 machines on the Top 500 list employ a co-processor, up from 103 systems five years ago and 62 systems eight years ago, though up just 3% HoH and 2% from a year ago." "We reiterate Buys and top compute picks on NVDA (accelerator dominance) and AMD (CPU share gains), but Underperform on INTC (CPU share loss, foundry distraction)."

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $300.25 yesterday.

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