Intel Plans to Beat AMD for Second Place in the Artificial Intelligence (AI) Chip Race
The market for artificial intelligence (AI) accelerators, which provide the incredible computational horsepower necessary to train and run powerful AI models, is dominated by Nvidia. A combination of best-in-class hardware and a software platform that locks in developers has made it next to impossible for competitors to make much headway.
Nvidia is almost certain to lose some of its dominance as competitors flood the market with alternatives, and as cloud computing giants design custom AI chips for their data centers. However, Nvidia's head start makes it unlikely the company will be dethroned in the near future.
That leaves rivals (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD) fighting for second place. AMD has made more progress than Intel so far. The company expects to generate around $4 billion in AI chip sales this year, driven by its recently launched Instinct MI300 series accelerators. Meanwhile, Intel expects its latest Gaudi 3 chips to produce just $500 million in revenue, although that number may not include revenue from older Gaudi 2 chips.
Source Fool.com
Intel Corp. Stock
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