Thijs Knaap, chief economist at APG, thinks that Nvidia's move to invest in the consumer computer market with the development of a new chip is good for innovation in general. But whether this makes it a good investment remains a question mark. He says this during the investor panel in the radio program BNR Zakendoen.
Nvidia is currently focusing on two areas: photonics and a new chip for consumer computers (RTX Spark superchip). This second market is not without risks, Knaap explains. "We know that computer hardware is a real commodity market, so buyers are super price sensitive. As a producer, it is therefore difficult to make large profits. Still, I'm glad Nvidia is doing this, because it does ensure that the innovation we need takes place. In the history of technology, we have had a lot to thank for corporate laboratories of large companies, such as Bell and Xerox in the US and the NatLab of Philips in the Netherlands. They ultimately led to major breakthroughs that we still enjoy today. But I'm not so sure if it's a good investment."
Knaap's doubt lies in the uncertainty about where AI technology will ultimately be implemented. "Now it all runs in data centers. Nvidia is now betting that we will soon run all this decentrally in our own computers. That's a possibility, but it will depend entirely on how those AI models develop. Are they only going to get bigger and heavier and therefore eat up more energy, or will they succeed in making them small enough to run on your own computer?