Nvidia Uses Its Own Chips for Design Workflows While AMD Relies on Partners
Nvidia has begun using its own Vera CPU within the electronic design automation (EDA) workflows that will produce its next-generation CPUs and GPUs. This marks a strategic shift where current chips help build future ones, enhancing efficiency in verification and simulation processes by up to 1.5x when tested with tools from Cadence and Synopsys. In contrast, AMD is leveraging autonomous AI workflows developed jointly by Microsoft and Synopsys to accelerate its chip design process without building proprietary silicon for this purpose. While both companies aim to speed up their next-gen designs using advanced compute resources, Nvidia's approach offers a self-reinforcing advantage tied to owning the hardware-software stack. Nvidia is guiding toward $20 billion in Vera sales and sees potential server CPU revenue of around $200 billion from this product line. Meanwhile, AMD faces higher skepticism as reflected by its elevated short interest (2.44%) compared to Nvidia's 1.34%. Institutional ownership has increased for both firms, but their valuation multiples differ significantly.
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Topics: AMD chip design electronic design automation Nvidia Vera CPU