Industry leaders continue to vie for the powerful AI-building chips during a time of immense digital demand. The record-high share prices indicate keen investor interest, as increasing numbers of businesses compete to buy graphics processors to harness and deploy AI.
NVIDIA has already been leading the charge in high-end chips, having released its latest chip H200 at the end of 2023, which is designed to train AI models. Likewise, AMD has continued to ramp up its investments into AI technology, with a focus on the enterprise benefits that it can bring.
AI continues to achieve stock market success
Hype over AI has grown exponentially over the past 18 months, particularly with the launch of OpenAI’s ChatGPT causing AI stocks to surge. Now it is up to business leaders to develop that interest into cultivating more sophisticated technology for buyers.
This is what companies like Microsoft have achieved, having recently overtaken Apple as the world’s most valuable company. This is mostly in part due to Microsoft’s successes in generative AI (Gen AI) technology, in addition to its success with Copilot.
NVIDIA’s AI projects have also paid off, with its H200 working to supercharge Gen AI and high-performance computing (HPC) workloads with its higher performance and memory capabilities. The company has described its newest chip as the world’s most powerful supercharging GPU.
CEO Jensen Huang referred to AI as being a ‘reinvention of computing’ in 2023, as he continues to spearhead the company’s innovations. This includes a number of high-profile collaborations, including the likes of AWS and Microsoft.
Likewise, under the leadership of Lisa Su, AMD has seen a resurgence in its financial performance. The company's stock price and market share have grown substantially, reflecting the success of Su’s strategic initiatives. Her focus on innovation, particularly in the area of high-performance and energy-efficient processors, has positioned AMD as a leader in the semiconductor industry.
With AMD sales accelerating, it is clear that AI is the key. With the AI chips market valued at US$53.5bn in 2023, and set to grow to US$67bn in 2024, AMD is well-positioned to continue selling its semiconductors to power some of the leading digital transformations.
This news comes in the midst of tech giant Meta recently announcing that it was planning to buy billions of dollars worth of GPUs in 2024, including from NVIDIA. This is part of its commitment to continue developing open source artificial intelligence (AI) models.
At such a large scale, it is clear that the companies will only continue to expand their global presence throughout 2024, as AI becomes even more of a priority for businesses.
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