Has the GPU Run Out of Gas for NVIDIA?

A big story just hit the Barrons Online website:

Nvidia: VC Firm Loup Ventures Lauds Potential for Custom Chips: <https://www.barrons.com/articles/nvidia-vc-firm-loup-ventures-lauds-potential-for-custom-chips-1511386074>

Sure, NVIDIA is almost always in the tech financial news these days, which makes sense given the enormous run-up in its stock price over the last 2 years. But this story looks like a real big one. The kind of story NVIDIA bulls may want to carefully consider. As Tiernan Ray of Barrons reports, Gene Munster, now of Loup Ventures, and formerly of Piper Jaffrey, opines on the potential gains NVIDIA will make by getting into the ASIC chip business (think take big share from Tensor-Flow).

What isn’t mentioned here is the cost of re-tooling the NVIDIA chip making machine to cash in on this opportunity. Nor is there any mention of why they even “have to go there” given the great performance of their GPUs (always extolled by their CEO, Jen-Hsung Huang). Might it be the case SIMD/massive parallel processing ISN’T the way to go if you need to feed neural networks, aka “deep learning” so really nutritious stuff?

Sure looks this way to me. Hmmm…