From Nasdaq: 2024-04-26 09:22:00

Artificial intelligence (AI) is a hot topic as big tech companies like Microsoft, Alphabet, and Meta invest heavily in AI technology. Nvidia leads the AI semiconductor market, with its GPUs becoming industry standard. The company’s stock has risen nearly 200% in the last year, making it the third-largest company by market capitalization.

Nvidia’s announcement of its next-generation AI chips, the Grace Blackwell “superchips,” has investors excited. The GB200 chip promises a 25-fold decrease in power consumption and 30-fold speed increase in some AI applications compared to its predecessor. Analysts predict the AI market will exceed $1.8 trillion by 2030 with a CAGR of 37.3%.

Advanced Micro Devices (AMD) is making strides in the AI GPU market, with potential sales of $12.3 billion in 2025. Analysts believe that AMD’s competition with Nvidia’s AI chips will heat up, and AMD may release an updated, more powerful chip to rival Nvidia’s GB200. Investors are watching closely.

Intel, traditionally known for CPUs, is entering the AI market with its Gaudi 3 chip. Intel claims it will offer faster training times for some AI applications and more power efficiency than Nvidia’s H100. Intel is also pushing “AI everywhere” with AI acceleration in its fifth-generation Xeon CPUs. Investors should keep an eye on Intel’s developments in the AI space.

While Nvidia remains a dominant player in the AI semiconductor market, both AMD and Intel have the potential for significant growth if they can capture a fraction of the market. Investors may want to consider these companies given their histories of success and the projected growth of the AI market. Remember to do your own research before investing.

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Read more at Nasdaq: 2 Artificial Intelligence (AI) Chip Stocks to Watch That Aren’t Nvidia