AI chips generate a trillion dollars in profits for a company in a week. Why do they see potential investors?
Author: Stefan Selian
- AI chips resemble the shape of the chips that power video games.
- They are specifically designed to manufacture artificial intelligence systems.
- Experts believe that these chips are creating an artificial intelligence revolution that could reshape the entire field of technology.
There is no accepted definition of AI chips by analysts, but researcher Hannah Dohmen said: "The term includes specialized computing hardware that addresses AI workloads by solving problems that can overload traditional computers," abcNEWS wrote.
NVIDIA is a major company that sells AI chips. The company's stock price has risen 25% over the past week, or more than a trillion dollars. One of the latest products is the H100 GPU. The chip contains 8 billion transmitters, about 130,000 more than Apple's latest high-end processor.
Nvidia doesn't make these chips, a task that requires huge investments in factories. Instead, the company relies on Asian manufacturers such as Taiwanese semiconductor manufacturing or South Korea's Samsung Electronics.
The biggest customers for AI chips are Amazon and Microsoft. However, analysts say Nvidia will inevitably face tougher competition. One potential competitor is Advanced Micro Devices, which has taken steps to strengthen its line of AI chips.
For example, a few years ago, NVIDIA was in crisis because cryptocurrency miners took over the market. With the collapse of the cryptocurrency market in early 2022, this problem disappeared.
Rohua News Agency
