Chip stocks have captivated Wall Street over the past year as the boom in artificial intelligence (AI) has sent demand for graphics processing units (GPUs) skyrocketing. Powerful hardware is critical to training and running AI models. Thus, as interest in AI has soared, so have chip sales.

As a result, chip stocks like Nvidia (NASDAQ: NVDA) and (NASDAQ: INTC) have been placed under a microscope over the past year, with analysts questioning how much growth potential these companies have in AI. Nvidia has made countless investors bullish, getting a head start in AI chips and quickly becoming the go-to GPU supplier for many AI-driven companies.

Intel has taken a slower approach to AI. However, it is gradually setting itself apart from its chip rivals by expanding into manufacturing. The company is gearing up to become one of the biggest semiconductor manufacturers in the U.S. and Europe just as chip demand is rising.

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Source Fool.com