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Evaluating AI and Gaming Innovations in the Computer Hardware Industry

GOOVER DAILY REPORT June 28, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Challenges and Methods in AI Benchmarking
  3. Innovations at COMPUTEX 2024
  4. Top Prebuilt Gaming PCs of 2024
  5. Analyzing GPU Performance
  6. AI and High-Performance Computing Servers
  7. Intel's Market Strategy and Industry Response
  8. AI's Influence on Stock Valuation
  9. MSI’s Contributions to AI and Gaming
  10. Conclusion

1. Summary

  • The report "Evaluating AI and Gaming Innovations in the Computer Hardware Industry" examines the latest advancements in AI and gaming technologies, focusing on events like COMPUTEX 2024 and cutting-edge products like prebuilt gaming PCs for 2024 and AI-powered devices. The report delves into AI benchmarking challenges, the evolving role of GPUs, and significant contributions by leading companies such as Intel, Nvidia, and MSI. Key sections include an analysis of innovations presented at COMPUTEX 2024 in AI technologies and gaming hardware, evaluations of top prebuilt gaming PCs, and comparative performance tests of various GPUs. The report aims to provide a comprehensive understanding of ongoing trends and technological improvements in computer hardware.

2. Challenges and Methods in AI Benchmarking

  • 2-1. Existing AI Benchmarks

  • Geekbench ML is a multi-platform benchmark developed by the same creators of Geekbench 6, aimed at measuring machine learning performance on CPUs, GPUs, or neural accelerators using Core ML or NNAPI frameworks. The benchmark employs real-world workloads involving computer vision and natural language processing and generates a synthetic score. Variability in scores can be vast, with NPU results ranging from below 500 on the OnePlus Nord to over 3,600 on the Apple iPhone 15 Pro. While higher numbers indicate better performance, interpreting these synthetic scores can be challenging, particularly since Geekbench ML is not yet optimized for Qualcomm's Snapdragon X Elite and X Plus chipsets.

  • 2-2. Challenges in Synthetic Scoring

  • Synthetic scoring, as seen in Geekbench ML and UL Procyon benchmarks, presents a significant challenge due to its complexity. These scores, while helpful in understanding performance trends, can be difficult to translate into real-world utility. Variability and lack of optimization for the latest chipsets add to this challenge. For example, the Procyon AI Image Generation and AI Computer Vision benchmarks, though comprehensive, rely on synthetic results that don't always reflect real-world scenarios accurately. This is further complicated by the benchmarks being designed for different hardware, such as GPUs, which are not exclusive to AI tasks.

  • 2-3. Real-world Scenario Testing

  • To address the limitations of synthetic scoring, some benchmarks utilize real-world scenarios, such as using Audacity to remove background noise or auto-completing a Python program. These tests provide specific results that are arguably more relatable. However, their setup is often complex and time-consuming, making them less feasible for standard benchmarking processes. For instance, one Python workload test rendered a review unit laptop unusable until it was reset multiple times, highlighting the impracticality of such methods for consistent testing.

  • 2-4. Need for Diverse Benchmarks

  • The current state of AI benchmarking underscores the need for more diversified and comprehensive metrics. As the field of AI PCs is still in its early stages, the demand for better benchmarks that encompass a wider array of AI tasks is evident. Future benchmarks will likely evolve with the technological advancements, necessitating continuous adaptation to ensure accurate representation of AI PC performance. Currently, the reliance on a combination of Geekbench ML and UL Procyon tests is due to their reproducibility and simpler setup, although they are not without limitations.

3. Innovations at COMPUTEX 2024

  • 3-1. Highlighted AI Technologies

  • At COMPUTEX 2024, AI technologies took center stage, with keynotes from major technology giants like Intel, AMD, and Nvidia emphasizing the importance of AI in their upcoming products. Intel's keynote, presented by CEO Pat Gelsinger, focused on 'Bringing AI Everywhere,' highlighting AI-related server products and AI PCs equipped with Intel platforms from various brands. Nvidia continued its trend from the previous year by presenting AI-centric products, indicating a significant market shift towards AI applications.

  • 3-2. Advancements in Gaming Laptops

  • Several notable advancements in gaming laptops were showcased at COMPUTEX 2024. MSI introduced the Claw 8 AI+ 8-inch gaming handheld console with Intel's Core Ultra Lunar Lake processor, and the Stealth A16 AI+, featuring AMD's RYZEN AI 9 HX370. Asus unveiled the ROG Zephyrus G16 gaming laptop equipped with AMD's latest chipset, while the Prestige 13 AI+ Evo by MSI, boasting an Intel Core Ultra Lunar Lake processor and a 13.3-inch OLED screen, also made a significant impression.

  • 3-3. New Graphics Cards and Cooling Solutions

  • COMPUTEX 2024 showcased a plethora of new graphics cards and cooling solutions. Intel displayed the ARC A380 and A750 graphics cards, and features like M.2 and PCIe EZ-Latch Plus quick-detach designs were highlighted in Gigabyte AORUS products. MSI's new AI-powered graphic cards with striking designs and ASUS's TUF Gaming motherboards equipped with AMD's next-generation chipset were also prominent. InWin introduced several high-load power supplies suitable for AI workstations and a variety of liquid-cooling solutions designed for high-performance desktop setups.

  • 3-4. Technology Evolution in the Past Two Decades

  • Reflecting on the evolution of technology over the past two decades, COMPUTEX Taipei has dramatically transformed. Starting from 2004, the exhibition has continuously adapted, gaining immense importance in showcasing cutting-edge technologies. From advancements in AI to the leaps in gaming hardware, the event illustrates how the industry has shifted towards more integrated and intelligent solutions.

4. Top Prebuilt Gaming PCs of 2024

  • 4-1. HP Omen 45L

  • The HP Omen 45L is highlighted as the best gaming PC of 2024. It boasts high performance with an Intel Core i9 CPU and Nvidia RTX 4090 GPU, supported by 16GB of RAM. The Omen 45L is noted for its robust cooling system, spacious case for upgrades, and ease of object manipulation. Despite its premium price starting at $2060, it is recommended for those who want a top-tier prebuilt chassis that supports future customizations.

  • 4-2. iBuyPower TraceMesh Gaming Desktop

  • The iBuyPower TraceMesh Gaming Desktop is recognized as the best budget gaming PC of 2024. It features a 13th gen Intel Core i7 processor with an Nvidia RTX 4060 GPU, supported by 16GB of high-bandwidth DDR5 RAM and 1TB SSD storage. This PC is designed for 1080p gaming at high frame rates and offers the ability to upgrade components down the line, providing significant value for gamers on a budget.

  • 4-3. Alienware Aurora R16

  • The Alienware Aurora R16 is categorized as the best high-end gaming PC of 2024. This model includes an Intel Core i9-14900KF processor and Nvidia RTX 4080 Super graphics card. It comes with substantial specifications like 32GB of DDR5 memory and a 2TB NVMe M.2 PCIe SSD, designed for high frame rates in 4K and multitasking. The R16 also features a 240mm liquid CPU cooler and a case built for optimal airflow.

  • 4-4. MSI MPG Trident AS

  • Described as the best mini gaming PC of 2024, the MSI MPG Trident AS offers a compact design with a 14th-gen Intel Core i7 processor, Nvidia RTX 4060 Ti GPU, 16GB RAM, and a 1TB SSD. Its compact form factor makes it suitable for smaller spaces while still delivering strong gaming performance. The case includes special technology for independent air chambers to keep the system cool despite its size.

  • 4-5. MSI Vision Elite RS 14NUI9-679US

  • The MSI Vision Elite RS 14NUI9-679US is identified as the best current-gen gaming PC of 2024. It is equipped with a 14th-gen Intel Core i9 CPU and Nvidia RTX 4090 GPU, complemented by 64GB of DDR5 memory and 2TB SSD storage. This PC is designed for handling the most demanding 4K games at high frame rates and features advanced cooling solutions like a 360mm liquid CPU cooler. Additionally, it supports Wi-Fi 7 for future-proof connectivity.

5. Analyzing GPU Performance

  • 5-1. Comparative Benchmark Testing

  • A detailed benchmark test was conducted using Ghost of Tsushima to evaluate the performance of various GPUs, including Intel Arc A770, AMD Radeon RX 7800 XT, and Nvidia GeForce RTX 3060 Ti. The test explored multiple graphics presets, upscaling, and frame generation techniques. While most GPUs performed well, the Intel Arc A770 exhibited issues, including visual glitches and subpar performance compared to AMD and Nvidia GPUs.

  • 5-2. Intel Arc A770 Performance Challenges

  • The Intel Arc A770 faced significant performance challenges during the benchmark tests. Initially, the GPU showed rendering glitches which were resolved by using an Arc A770 Limited Edition card and updating the drivers. Despite these adjustments, the Arc A770's performance was still inconsistent, particularly at higher resolutions (1440p and 4K). Key performance issues were linked to specific game settings, such as volumetric fog, which caused a significant drop in frame rates. Additional testing with Intel's GPA software and a Vulkan compute performance tool indicated that the Alchemist architecture's inefficiencies might be contributing to these performance issues.

  • 5-3. AMD and Nvidia Market Position

  • AMD and Nvidia maintain a dominant position in the GPU market. Benchmark tests revealed that AMD's Radeon RX 7800 XT and Nvidia's GeForce RTX 3060 Ti outperformed the Intel Arc A770 by substantial margins. For instance, at 1440p High settings, the RX 7800 XT was 132% faster than the Arc A770, and the RX 6750 XT was 68% faster. The superior hardware specifications of AMD and Nvidia GPUs, including dual-ALU shaders, more cache, and higher VRAM bandwidth, contribute to their higher performance levels. As Intel continues to develop its Battlemage GPU, it faces a significant challenge to bridge this performance gap.

6. AI and High-Performance Computing Servers

  • 6-1. Dell PowerEdge XE9680 Features

  • The Dell XE9680 6U server represents Dell’s first 8x GPU platform, specifically engineered to enhance application performance for complex Generative AI, Machine Learning, Deep Learning, and High Performance Computing workloads. This server is equipped with up to 56-core 4th generation Intel Xeon processors and features the highest GPU memory capacity and bandwidth available, allowing it to manage extremely large and complex models and datasets.

  • 6-2. Generative AI Training

  • The server's capability to improve generative AI training performance is bolstered by GPU-GPU communication facilitated by up to 1.5TB of shared coherent GPU memory. The server offers different GPU module configurations, including eight NVIDIA H100 SXM5 700W GPUs interconnected with NVLink, eight NVIDIA A100 SXM4 500W GPUs interconnected with NVLink, or eight AMD Instinct MI300X 750W OAM GPUs interconnected with Infinity Fabric links.

  • 6-3. Data Flow Optimization

  • Accelerated input/output throughput is achieved through the deployment of the latest generation technologies such as DDR5, PCIe Gen 5.0, and NVMe SSDs. The server also features up to 10 front-facing PCIe Gen 5 slots and up to 16 drives, enabling optimal expansion for high-performance real-time AI operations.

  • 6-4. Cyber Resilient Architecture

  • The Cyber Resilient Architecture of the Dell PowerEdge XE9680 ensures a Zero Trust IT environment and operations. Security measures are integrated into every phase of the PowerEdge lifecycle, including a protected supply chain and factory-to-site integrity assurance. Features such as silicon-based root of trust, Multi-Factor Authentication (MFA), and role-based access controls ensure trusted operations. Additionally, the Dell OpenManage™ systems management portfolio provides a secure, efficient, and comprehensive solution for managing PowerEdge servers through the OpenManage Enterprise console and iDRAC.

7. Intel's Market Strategy and Industry Response

  • 7-1. IDM 2.0 Strategy

  • Intel has adopted the IDM 2.0 Strategy to address challenges posed by industry shifts and disruptions. This strategy separates Intel Products from Intel Foundry, promoting operational transparency and competitive innovation. The goal is for each entity to focus on its core competencies and attract customers through efficiency and cost-effectiveness, driving both to optimize performance and cut down inefficiencies.

  • 7-2. Market Positioning against ARM

  • ARM's rise has disrupted Intel’s dominance in high-performance CPUs by offering efficient and 'good enough' CPUs for mobile devices. Intel's response includes the introduction of E-cores in their CPU designs, which improves efficiency by managing light and heavy workloads separately. The development of Lunar Lake and Arrow Lake CPUs aims to counter ARM's advances in both low-power mobile and high-performance processor markets.

  • 7-3. Challenges in the CPU Market

  • Intel faces several challenges, including the rising costs of advancing Moore’s Law and increased competition from TSMC and ARM. The company is also encountering difficulties with performance oversupply in high-density computing segments, which presents an opportunity for ARM to capitalize on offering lower-cost alternatives. These factors necessitate Intel's strategic adaptations to maintain competitive edge and market presence.

8. AI's Influence on Stock Valuation

  • 8-1. Nvidia's Market Dominance

  • Nvidia has positioned itself as an industry-leading chipmaker, particularly benefiting from the rise of AI applications. With its GPUs optimized for parallel processing, Nvidia has gained significant market share. The company has also created the Compute Unified Device Architecture (CUDA), a programming model and parallel computing platform that has become the industry standard. Despite competition from AMD and Intel, Nvidia continues to dominate due to its early and strategic focus on AI.

  • 8-2. Economic Impact of AI

  • Nvidia's profitability has soared due to its applicability in AI, with its stock price rising nearly 155% since January. The company briefly became the world's most valuable company, highlighting the economic potential of AI technologies. To sustain growth, Nvidia's future depends on the widespread adoption of AI by major companies, which will need extensive computational power for their AI applications. This determines Nvidia’s continued economic impact on the market.

  • 8-3. Risks of Overvaluation

  • There are concerns about Nvidia being overvalued despite its impressive growth. Experts, including strategists like Jim Reid of Deutsche Bank, have warned of 'signs of over-exuberance' about Nvidia’s prospects. Some Nvidia executives have sold their shares, indicating potential caution. The company's ability to maintain its growth is closely tied to advancements in generative AI and its practical integration into business models.

9. MSI’s Contributions to AI and Gaming

  • 9-1. AI-Powered Gaming PCs

  • MSI has been focusing on introducing AI-powered gaming PCs, not just for gamers but also for business users. At Computex 2024 in Taipei, MSI unveiled a new AI-powered gaming PC featuring a screen on the front. This system is designed to cater to the needs of various users, from gamers to professionals looking for a powerful machine.

  • 9-2. Gaming Handhelds and Accessories

  • The PC gaming handheld market has experienced significant growth since the introduction of Valve's Steam Deck. MSI has entered this space with the MSI Claw gaming handheld, which boasts an Intel Core Ultra processor and Arc 5 graphics. The Claw features a 7-inch IPS touchscreen with a 120Hz variable refresh rate and 500 nits of peak brightness. Additionally, MSI offers various accessories for the Claw, including docks for charging and enhancing functionality, protective cases, and microSD cards for additional storage.

  • 9-3. QD-OLED Monitors

  • MSI has also expanded its offerings in the monitor market with QD-OLED displays. These monitors boast steep contrast and color purity, providing an immersive experience for gaming and productivity. Along with updates to these two-year-old models, MSI has introduced minor improvements and price reductions to make these high-end monitors more accessible to a broader audience.

  • 9-4. Software for GPU Optimization

  • MSI Afterburner remains a key software offering for optimizing GPU performance. This tool is compatible with most desktop and laptop graphics cards from Nvidia, Intel, and AMD. It allows users to overclock and undervolt their GPUs, ensuring that their gaming systems operate at peak performance levels. This software is crucial for both casual gamers and veteran PC builders looking to get the most out of their hardware.

10. Conclusion

  • In conclusion, the report underscores the dynamic advancements in AI and gaming within the computer hardware industry. Key findings highlight the numerous challenges in AI benchmarking, necessitating better metrics for accurate evaluations. Innovations showcased at COMPUTEX 2024 emphasize the industry's evolution towards AI-centric products and sophisticated gaming hardware. The report identifies the best prebuilt gaming PCs of 2024, catering to various user needs from high-end setups to budget-friendly options. The in-depth GPU performance analysis illustrates a competitive landscape, particularly between Intel, AMD, and Nvidia, with each company vying for market superiority. AI's influence on stock valuation demonstrates Nvidia's dominant position due to early strategic investments in AI technologies. Limitations include the variability in synthetic benchmarking and evolving market conditions that require continuous adaptation. Future prospects point towards more integrated AI applications and enhanced gaming experiences driven by cutting-edge hardware. The findings suggest practical applications such as investing in diversified benchmarks and fostering innovation to meet future technological demands.

11. Glossary

  • 11-1. Copilot+ [Technology]

  • Microsoft's program requiring AI PCs to have over 40 TOPS of NPU performance, emphasizing the challenges in AI benchmarking.

  • 11-2. COMPUTEX [Event]

  • An annual technology event where major tech companies showcase their latest innovations, with a strong focus on AI integration in 2024.

  • 11-3. HP Omen 45L [Product]

  • A prebuilt gaming PC noted for its customization options and ease of upgrades, making it suitable for varied gaming needs.

  • 11-4. Intel Arc A770 [Product]

  • A GPU that faces performance and driver challenges but shows improvement upon further testing, indicating Intel's continued efforts in the GPU market.

  • 11-5. Dell PowerEdge XE9680 [Product]

  • A high-performance server designed for AI, Machine Learning, and HPC workloads, boasting extensive configuration options and security features.

  • 11-6. IDM 2.0 Strategy [Corporate Strategy]

  • Intel's approach to separate its product and foundry businesses to better compete in the semiconductor industry amidst rising costs and specialization demands.

  • 11-7. Nvidia [Company]

  • A leading player in the AI market, recognized for its GPUs and strategic early investments in AI, which have driven major advancements and market profitability.

  • 11-8. MSI [Company]

  • Prominent for its advancements in AI-powered gaming PCs, gaming handhelds, QD-OLED monitors, and GPU optimization software.

12. Source Documents