This Company Could Become the Nvidia of AI Inference
ON Semiconductor's fast-growing revenue related to data centers is likely to become a key growth driver for many years to come.
This Company Could Become the Nvidia of AI Inference
Overview
It's no secret that spending related to artificial intelligence (AI) continues to exceed expectations, and based on hyperscalers' spending plans, it's likely to do so for years to come.
That said, the nature of AI spending will shift, with inference spending set to surpass that for data center infrastructure in a few years. That's why a stock like power semiconductor company ON Semiconductor (NASDAQ: ON) is ideally placed to be a major beneficiary. Here's why.
Details
To understand why, it's important to differentiate between inference spending and data center infrastructure spending. The two are obviously linked -- you can't have one without the other -- but the reality is that infrastructure spending is booming now as hyperscalers rush to build it to support growth in the future. You can think of this spending as AI's capital budget for building data centers and training models.
Source
Originally published at www.fool.com.
