Increased demand for artificial intelligence (AI) services created steep competition among tech companies, particularly in the chip market. Hardware like graphics processing units (GPUs) are crucial to training AI models, creating a lucrative opportunity for the companies developing these chips.

Nvidia took the lead in AI GPUs, which led its stock price and earnings to skyrocket over the last year. However, eyes have also been on chipmakers Intel (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD), which launched competing chips and could offer significant gains as the industry expands.

Intel launched new AI accelerators this year and is expanding its manufacturing division with hopes of becoming a leading AI chip fabricator. Meanwhile, AMD's second-largest market share in GPUs could grant it a lucrative role with AI in the long term, allowing it to fill in the supply gaps that Nvidia might not be able to meet.

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Source Fool.com