Nvidia might be getting a big break as numerous investors are placing bets on the well-known tech manufacturing company to be one of the biggest players in the upcoming AI boom.

AI has always required advanced processors in order to operate in which companies have traditionally chosen Intel or AMD, however with the recent announcement of ChatGPT and the AI arms race to create what is known as generative AI is likely to shift the needs of companies.

Current AI can manage just fine with a CPU which is designed to handle a wide range of tasks but can be inefficient. Newer generative AI is proving to be a bit too complex for standard CPUs and thus requires the addition of a GPU (graphics processing unit) in order to operate effectively.

Nvidia has largely dominated the GPU market for some time now and Wall Street is beginning to believe that it will be the primary provider of GPUs during the growth of generative AI. Since the beginning of the year, Nvidia’s stock price has already shot up by nearly 50% with AMD trailing not far behind with a growth of 30%.

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Source: Financial Times