Charles Esther
In a candid discussion, Intel’s former CEO Pat Gelsinger acknowledged that Nvidia is executing remarkably well in the AI chip industry.
During an episode of Yahoo Finance’s Opening Bid, Gelsinger praised Nvidia’s strategic edge and execution under CEO Jensen Huang, emphasizing the company’s dominance in the AI accelerator space.
Nvidia’s Strong Execution and Leadership
Gelsinger, who stepped down as Intel CEO in December, stated that Nvidia’s success is no accident.
He attributed the company’s growth to its ability to “execute well” under Huang’s leadership.
“Jensen is on it — driving his teams to stay in the front end,” Gelsinger said.
This aggressive push to lead has helped Nvidia maintain its top position despite increasing competition from chipmakers like Intel and AMD.
The Power of Competitive Moats
Another key strength, according to Gelsinger, lies in Nvidia’s ability to create powerful competitive moats.
He referenced technologies such as NVLink — which allows multiple GPUs to connect seamlessly within a server — and CUDA, Nvidia’s proprietary parallel computing platform that accelerates AI workloads using GPUs.
These innovations give Nvidia a significant advantage in the fast-growing AI market.
The Booming AI Chip Market
The demand for AI chips has surged, thanks to major investments by tech giants and a wave of AI startups.
“I can’t throw a rock right without hitting a new AI startup in the Bay Area,” Gelsinger joked.
This growing market has intensified the battle between chipmakers, with Nvidia currently leading the charge due to its focused innovation and superior infrastructure.
Intel’s Recent Struggles
Once a titan in the semiconductor industry, Intel has seen its dominance erode.
It missed several key opportunities — including the mobile revolution and the initial wave of AI adoption.
In 2024, Intel’s stock fell nearly 50% amid mounting losses and operational challenges.
Gelsinger had tried to correct course with massive layoffs and restructuring efforts.
New Leadership at Intel
In March, veteran executive Lip-Bu Tan took over as Intel’s new CEO.
During his first public appearance, Tan acknowledged the company’s shortcomings.
“We had been too slow to adapt and to meet your needs,” he told customers at an event in Las Vegas.
“You deserve better, and we need to improve, and we will. Please be brutally honest with us.”
Conclusion
Pat Gelsinger’s praise of Nvidia highlights a harsh truth for Intel — the company must radically evolve to keep pace in the AI era.
While Nvidia races ahead with strong execution and powerful innovations, Intel is left grappling with its past and searching for a path forward under new leadership.
