Former Intel (INTC, Financials) CEO Pat Gelsinger said Nvidia (NVDA, Financials) secured its leadership in artificial intelligence chips by executing well and building strong competitive defenses.
In an interview with Yahoo Finance's Opening Bid, Gelsinger credited Nvidia CEO Jensen Huang with keeping the company ahead of rivals by pushing teams to stay at the cutting edge. He said Nvidia's advantage comes from a combination of strong execution and "meaningful moats" that protect its position in the fast-growing AI market.
Nvidia's technologies like NVLink, which links GPUs within servers, and CUDA, a platform that speeds up computing workloads, were cited by Gelsinger as key examples of those moats. He noted that investment from large corporations and a surge of AI startups — particularly in the Bay Area — have accelerated demand for AI chips.
"I can't throw a rock right without hitting a new AI startup in the Bay Area," Gelsinger said.
While Nvidia has gained momentum, Intel has struggled. Once a dominant force in Silicon Valley, Intel missed major industry shifts such as the rise of mobile and AI. The company's stock fell nearly 50% in 2024, prompting layoffs and buyouts during Gelsinger's tenure.
Intel's new CEO, Lip-Bu Tan, who took over in March, acknowledged the company had been "too slow to adapt" and pledged to rebuild trust with customers. Intel's stock has dropped another 22% over the past month.
- CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
- Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
- Double Buys: Companies that both Gurus and Insiders are buying
- Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.
