In its ER conference call, the management stated that the demand for its custom AI chips (XPUs/ASICs) are booming.
They also saied the following---typically those AI chips business have a lower gross margin compared to its traditional, general-purpose semiconductors or its high-margin software business.
To me, this really means, the are using lower price to attract clients.
It is price competition. If this is the case, next quarter may be a turning point---the more AI chips business as % of total sales they get, the lower the margin.
这行业是不是在开始卷价格了？let's see.
