This 1 Semiconductor Stock Could Be A Best Buy Now for the AI Arms Race
Big tech escalated the artificial intelligence (AI) arms race at the start of 2023. Microsoft invested in ChatGPT owner OpenAI, Alphabet's Google publicized a countermeasure with the soft launch of Bard, and Meta Platforms said it's revamping its data centers to favor more efficient computing use as it rolls out new AI of its own across its social media apps.
Behind all of this fancy new AI is an advanced kind of semiconductor system meant to be housed in a remote data center with its computation delivered to users via the internet. In the years to follow, more powerful -- and also more energy efficient -- chips will need to be designed and manufactured. This could make Cadence Design Systems (NASDAQ: CDNS) a fantastic buy today for this coming wave of AI.
Cadence Design, as well as its peers Synopsys and Mentor (now owned by German industrialist Siemens), have staked a claim in a very important part of the semiconductor market. They provide electronic design automation (EDA) software. Think of it like CAD (computer-aided design), but for chips and computing systems instead of for buildings.
Source Fool.com
