UBS Group AG interprets the Taipei Computer Show: AI intelligent bodies ignite the demand for computing power, NVIDIA Corporation's (NVDA.US) GPU advantage continues to crush AMD (AMD.US).

Analysts from UBS Group AG stated that the Taipei International Computer Show (Computex) held in Taiwan last week further confirmed the increasing demand for computing power related to artificial intelligence (AI), with the rise of AI intelligent bodies being a key driver. The exhibition also highlighted that NVIDIA Corporation (NVDA.US) continues to significantly outpace its main competitor AMD (AMD.US) in terms of GPU shipments. The analyst team led by Timothy Arcuri of UBS Group AG stated in an investor research report released on Monday: "Regarding the latest product development pace of NVIDIA Corporation and AMD, based on our latest research (consistent with our models), we believe that NVIDIA Corporation's Blackwell platform will dominate shipments in 2026, while Rubin Ultra will gradually join starting in the fourth quarter of 2026. As for AMD's Helios platform, we still expect its mainboard shipments to begin in the fourth quarter of 2026, but due to additional time required for double-width rack optimization, validation, and data center integration, the complete rack deployment is likely to be delayed until the end of 2026." Chip design company Arm (ARM.US) also provided a more optimistic outlook for its CPU business prospects, as it has won more large customers. Arcuri mentioned: "Arm has confirmed that its AGI chips are currently in mass production at Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), covering rack configurations of 36 kilowatts (8,160 cores) and 200 kilowatts (45,696 cores). Importantly, ByteDance and Oracle Corporation (ORCL.US) have been disclosed as new customers for AGI, and Arm has stated that its previously set target of $15 billion in AGI revenue for the fiscal year 2031 is actually conservative. We see a growing customer base, which is encouraging, as we have previously pointed out that relying solely on Meta (META.US)/OpenAI may be difficult to reach the $15 billion demand scale, as historically they have relied on other suppliers (such as AMD, NVIDIA Corporation, Intel Corporation (INTC.US), and cloud service providers for CPU)." Additionally, Marvell Technology, Inc. (MRVL.US) has become a market focus. Previously, NVIDIA Corporation CEO Jensen Huang stated that Marvell is expected to grow into the next trillion-dollar company, leading to a significant surge in its stock price. Arcuri analyzed: "NVIDIA Corporation emphasized its reliance on Marvell in interconnects, silicon photonics, and optical devices, including in the NVLink Fusion. According to our research, this area may impact the deployment of future AWS Trainium. Marvell also reiterated that the 'copper cable transmission bottleneck' is actually migrating to 400G speed rates within the rack, further confirming the transition to higher data rates with Co-Packaged Optics (CPO) technology in the future." He added: "Although we believe that the market reaction has been somewhat excessive considering the limited additional information disclosed, we still have a constructive view on Marvell's position in the AI network and XPU field."