AMD Could Fail in Artificial Intelligence for 1 Reason
Demand for powerful chips capable of training and running advanced artificial intelligence (AI) models, particularly large language models like OpenAI's ChatGPT, is exploding. Some estimates put the market for AI chips growing to nearly $400 billion by 2032. For comparison, the market for CPUs totaled about $108 billion last year.
While outlooks for AI chip demand a decade from now may prove overly optimistic, demand will almost certainly rise substantially in the years ahead. AI is a transformative technology that will find its way into nearly every industry.
Nvidia (NASDAQ: NVDA) has been the prime beneficiary of the booming demand for AI chips. The company isn't quite the only game in town, but it has a key advantage that will make it a slog for any competitor to catch up. Advanced Micro Devices (NASDAQ: AMD) is planning to launch an updated slate of high-powered data center GPUs targeting the most computationally intense AI workloads, but even if the hardware is top-notch, the software could hold the company back.
Source Fool.com
Advanced Micro Devices Inc. Stock
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