Chip companies have been the primary beneficiaries of a recent artificial intelligence (AI) boom. The industry has exploded since November 2022, when OpenAI launched ChatGPT, an advanced chatbot made possible by high-performance chips like graphics processing units (GPUs).

As a leader in GPUs, Nvidia (NASDAQ: NVDA) has massively profited from increased demand for the chips. As I write this, its stock has climbed 642% since the start of last year, alongside soaring earnings as it achieved a majority market share in AI GPUs. Nvidia could have a lot more to offer investors as the industry develops.

However, there is also an argument to be made for investing in a less established AI chip stock like (NASDAQ: INTC), which could have room to run. The company has had a challenging few years, with its share price down 60% since 2021. However, Intel is making moves that could secure a powerful role in AI over the long term.

Continue reading

Source Fool.com