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MKM Partners estimates artificial intelligence a $15B+ silicon opportunity by 2025

Published 11/16/2016, 02:35 PM
MKM Partners estimates artificial intelligence a $15B+ silicon opportunity by 2025
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XLNX
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NVDA
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  • In a note on the hypothesis, analyst Ian Ing spotlights advantage for Nvidia's (NVDA +6.2%) GPUs, Intel's (INTC -0.5%) and Xilinx's (XLNX -0.4%) field-programmable gate arrays, as well as Intel's co-processors and full-custom solutions. Regarding Advanced Micro Devices (AMD +9.4%), considers to be "too resource constrained to fully address the opportunity."
  • Potential and acceleration in data center machine learning ($2B-$4B), autonomous driving ($9B+ per 10% unit share increment) and deep learning ($4B) [drones, robots, niche verticals etc.] represent base calculation of the $15B+ figure.
  • With developments evolving quickly in the space, and other supply players involved (i.e. Qualcomm/NXP Semiconductors etc.), shifts in advantage and opportunity throughout the field, and these names, are of course nonetheless constantly in motion.
  • Ing rates Nvidia and Intel at Buy with respective $87 (current price $91.44) and $44 (current price $34.73) targets. Xilinx is set at Neutral with a $35 target (current price $53.66) while Advanced Micro Devices is unrated in the issued commentary.


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