Nvidia CEO Jen-Hsun Huang recently announced several upcoming product launches, including the next-generation graphics architectures Blackwell Ultra and Vera Rubin. In a note to clients, Citi analyst Christopher Danely parsed the announcements, focusing on their potential impact on other players in the chip sector.
The introduction of Nvidia’s Future Rubin GPU is seen as positive news for Micron Technology, an AI chipmaker specializing in memory chips. The new GPU boasts 50% more High Bandwidth Memory (HBM) DRAM than its predecessor and contains 288GB of HBM4 DRAM. This increase is expected to improve Micron’s HBM gross margins by roughly 70%.
TrendForce has revised its Q2 2025 DRAM price forecast, predicting a 3%-8% quarter-over-quarter increase due to improved inventory dynamics. Citi analyst Danely views this as positive news for Micron, reinforcing the expectation of improved pricing in the second quarter of 2025.
Nvidia also announced co-packaged optics (CPO) technology, a next-generation networking solution. However, Danely does not anticipate significant impact on Broadcom, a leader in networking, as Nvidia’s CPO is expected to be available later than Broadcom’s similar technology.
The analyst expects Broadcom to benefit from the industry’s shift away from Nvidia, with custom ASICs capturing around 25% of the $380 billion AI accelerator market by 2028. Meanwhile, Nvidia’s advancements in the data center market may have a mild negative impact on traditional server providers like Intel and Advanced Micro Devices.
Source: https://finance.yahoo.com/news/citi-lists-key-takeaways-chip-104357443.html