Analysts at Bloomberg expect generative artificial intelligence (AI) to become a $1.3 trillion industry as companies develop complex AI-based applications and the training infrastructure to support them.

Advanced Micro Devices (NASDAQ: AMD) and Super Micro Computer (NASDAQ: SMCI) focus on the latter side of the market and could enjoy impressive growth as the opportunity expands. Let's discuss why they could make good alternatives to the current market leader, Nvidia.

With shares up by a whopping 68% year to date, AMD stock has risen substantially in anticipation of an AI-driven boost in its revenue and earnings potential. While the company seems to have a slower product launch cycle than its biggest rival Nvidia, new AI chips could become an increasingly important part of its operations.

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Source Fool.com