This Artificial Intelligence (AI) Chip Stock Is Dominating the Inference Era. It Could Be the Biggest Winner of This Megatrend (Hint: It's Not AMD or Broadcom)
Demand for AI inference compute workloads is increasing rapidly, and Nvidia is dominating the market despite competition from AMD and Broadcom.
This Artificial Intelligence (AI) Chip Stock Is Dominating the Inference Era. It Could Be the Biggest Winner of This Megatrend (Hint: It's Not AMD or Broadcom)
Overview
Artificial intelligence (AI) is moving from the training phase to the production phase, as enterprises, users, and governments that have spent hundreds of billions of dollars on this technology are looking to unlock its productivity gains.
This process of deploying trained AI models into production, where they execute tasks in the real-world by ingesting fresh inputs, is known as inference. Deloitte estimates that the shift from training AI models to using them at scale in real-world applications will drive a change in AI computing. The consulting firm points out that AI inference workloads will account for two-thirds of the computing power in AI data centers this year.
Details
For comparison, inference workloads accounted for one-third of computing power in 2023 and half of the computing power in AI data centers last year. Now, this shift from training to inference is good news for Advanced Micro Devices (NASDAQ: AMD) and Broadcom (NASDAQ: AVGO). These semiconductor companies design inference-focused chips, which explains why they have been growing at a solid pace.
Source
Originally published at www.fool.com.
