3 Stocks That Could Be Surprise Artificial Intelligence (AI) Winners in 2024
2023 kicked off an arms race in artificial intelligence (AI). Big tech companies spent heavily on software development and specific chips from companies like Nvidia to train their AI models. As a result, investors saw a few select chipmakers emerge as big winners as demand from deep-pocketed tech innovators drove sales significantly higher.
But the next class of AI winners won't be the companies producing chips to train AI models; it'll be the companies producing chips that use those AI models to produce responses to prompts. Demand for these so-called inference chips will increase as more people Demand the ability to use AI on their devices instead of sending data to a server and waiting for a response. Analysts at UBS see inference chips moving from 10% of all AI chips sold in 2023 to 20% by 2025 and $30 billion in total revenue within five to 10 years.
On-device AI is essential for applications that require low latency and reliability (like autonomous vehicles) or where you can't compromise on data security and privacy (like medical or government records). As demand for on-device AI increases, several companies stand to benefit.
Source Fool.com
