The analyst highlights that Nvidia's architecture may not be optimal, creating scope for new players like Etched to innovate at the physical layer and Chinese companies at the design/logical layer. Innovation in memory access, network, RAM pooling, and optical interconnects (e.g., Ayar Labs, Light Matter) is crucial, as current HBM standards introduce constraints. China is developing numerous AI compute stacks from companies including Huawei, Alibaba, and ByteDance.
The AI chip market is ripe for architectural and interconnect innovation beyond current Nvidia designs, while China's fragmented domestic AI compute stack development continues to proliferate.