Better AI Stock: Nvidia vs. AMD
The demand for chips that power artificial intelligence (AI) applications is expected to grow rapidly in the long run, with Precedence Research estimating that the AI chip market could clock annual growth of almost 30% over the next decade.
This will open a massive opportunity for the likes of Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD), as both companies are in the business of making chips that form the backbone of AI infrastructure. Graphics processing units (GPUs) -- which both AMD and Nvidia sell -- are playing a critical role in the training and inference of AI models, thanks to their massive parallel computing power.
ChatGPT, one of the most popular generative AI apps out there, was reportedly trained with the help of 10,000 Nvidia GPUs, according to Timothy Arcuri of UBS. Not surprisingly, there are concerns that a GPU supply shortage could arrive, as generative AI applications are expected to create the need for hundreds of thousands of GPUs. This explains why the global GPU market is expected to generate a massive $451 billion in revenue by 2030.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is one of the favorites of our community with 81 Buy predictions and 2 Sell predictions.
With a target price of 176 € there is a positive potential of 36.5% for Advanced Micro Devices Inc. compared to the current price of 128.94 €.
