From Nasdaq: 2025-05-21 03:35:00

At Computex in Taiwan, Nvidia announced NVLink Fusion, opening up its technology to other chipsets beyond Nvidia’s own. This move could have both positive and negative implications for shareholders, as it expands the market for Nvidia’s networking technology.

NVLink allows for integrated technology in servers without Nvidia chips, connecting custom ASICs for cloud companies. Partners like Marvell Technologies, Fujitsu, and Qualcomm are involved, along with Synopsis and Cadence Design Systems.

Nvidia’s opening up of NVLink may be a defensive move against competition from open-source alternatives like UALink. By expanding its networking market to non-Nvidia systems, Nvidia aims to boost sales and address the rise of custom ASICs in AI workloads.

Shareholders should view Nvidia’s NVLink Fusion as a strategic move to gain exposure to cloud giants’ ASIC systems, which are gaining market share. While Nvidia GPUs remain strong, custom-designed accelerators are on the rise, prompting Nvidia to adapt to industry trends for future growth.



Read more at Nasdaq: Nvidia Is Opening Its NVLink Technology to Others: But Is That Bullish or Bearish for the Stock?