The chip market has exploded over the last year as a boom in artificial intelligence (AI) led to a spike in demand for more powerful hardware. Increased interest in AI services has meant an increased need for graphics processing units (GPUs), the chips necessary to train and run AI models.

As a result, the companies at the forefront of this technology, Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD), have enjoyed stock gains of 222% and 84%, respectively, since last April. These companies have exciting outlooks in AI over the long term thanks to their successful chip businesses, and they could profit from the market's tailwinds for years.

The AI market hit close to $200 billion last year and is projected to have a compound annual growth rate of 37% through 2030. That trajectory would see the sector reach nearly $2 trillion by the decade's end.

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Source Fool.com