Nvidia (NVDA) Uses Own Chips for Design, While AMD (AMD) Relies on Rivals

Nvidia’s latest Vera CPU update is framed as a strategic edge in chip design: the company is using its own silicon and EDA workflows to speed verification and simulation for future CPUs and GPUs, with early tests showing up to 1.5x performance gains. The article argues this could strengthen Nvidia’s self-reinforcing design flywheel, reduce development time, and support margins over time. However, the market reaction remains tempered because investors are more focused on AI demand durability, China export restrictions, and concerns about circular financing in AI deals. AMD is presented as the main rival, but it is leaning on Synopsys and Microsoft-enabled workflows rather than in-house silicon for a similar productivity boost. The piece also notes rising hedge fund ownership in both names and lower short interest in Nvidia versus AMD, reinforcing that Nvidia looks less controversial than AMD on valuation and positioning, even as both remain central to the AI hardware trade.