This article was originally published on March 23rd via the SemiAnalysis newsletter.

A long-time supplier of Nvidia has seemingly been cut out of the supply chain for Nvidia’s next generation GPU. Nvidia unveiled the next generation Hopper GPU for AI and HPC compute applications at GTC on March 22nd 2022. This 80 billion transistor GPU delivers as much as a 6x performance increase in AI Transformer Applications. In most workloads, that performance gain will be 2x to 3x due to newer SMs, tensor cores, higher clock speeds, 4th generation NVLink, and DPX instructions. The top-spec of this GPU comes in an SMX style package with a power consumption of 700W!

This is a potential short opportunity with huge returns. We will discuss who this firm is, why this is negative, and why we think it is a short opportunity in our subscriber only section. We are temporarily increasing the price for a subscription due to the likelihood this short has at generating outsized returns.

Edit: The stock went down over 20% the day we published this report. and we have removed the subscription price increase as the returns have been made.