NVIDIA's latest innovation, NVLink Fusion, is now available for other chip designers—marking a strategic shift from proprietary interconnect to a licensed platform that ties multiple processors together for high-speed AI workloads.

What NVLink Fusion Brings to the Table

• Cross-chip bandwidth: Delivers up to 2 TB/s interconnect speeds, enabling seamless data sharing between GPUs and CPUs.

• Multi-vendor support: Marvell and MediaTek have already committed to integrating Fusion in their next-gen AI accelerators.

• Legacy compatibility: Builds on the original NVLink standard used in NVIDIA's GB200 (two Blackwell GPUs plus a Grace CPU), simplifying migration for existing users.

By licensing Fusion, NVIDIA shifts toward an ecosystem model—encouraging custom silicon designers to build powerful, heterogeneous AI systems without reinventing interconnect technology.

Strategic Implications for the Semiconductor Industry

1. Ecosystem expansion: Broad adoption of Fusion could establish NVLink as the de facto standard for high-performance AI clusters.

2. Competitive dynamics: Rival vendors may need to partner with NVIDIA or develop alternative interconnects, raising R&D stakes.

3. Valuation impact: Licensing revenue from Fusion could materially boost NVIDIA's recurring income streams.

To gauge how the industry values interconnect-centric firms versus pure-play chipmakers, analysts can compare current sector multiples using the Industry P/E Ratio API, revealing whether NVIDIA's ecosystem play commands a premium.

Financial Outlook and Advanced Valuation

With Fusion licensing set to roll out later this year, NVIDIA's long-term cash flows may gain new stability beyond hardware sales. Investors seeking a deep-dive valuation can run a scenario-based projection of Fusion royalties and GPU shipments via the Advanced DCF API, helping determine the present value of this strategic pivot.