When it comes to semiconductor stocks, odds are that companies such as Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) are the first that come to mind. Both companies specialize in designing advanced chips called graphics processing units (GPUs), which are essential components for training generative AI models and machine learning.

Over much of the last two years, Nvidia has emerged as the undisputed leader in the chip realm thanks to its long line of GPUs relative to what AMD has to offer. However, there is another part of Nvidia's computing and networking business that rarely gets spoken about -- and yet it's this very feature that has allowed Nvidia to remain in a market-leading position when it comes to data center GPUs.

Below, I'm going to explain what makes Nvidia such a force, and I'll detail AMD's latest move as it seeks to compete more closely with its rival, and how the chip king is responding.

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Source Fool.com