Graphics processing units have found an important life beyond videogames as an accelerator for artificial intelligence, but they could soon share that spotlight with other groupings of silicon. Nvidia Corp. NVDA, -2.44% investors especially should pay close attention to this battle, as that stock has experienced the biggest AI-influenced bump, though Advanced Micro Devices Inc. AMD, -0.30% could also be affected. Both stocks dropped Tuesday after Susquehanna Financial Group analyst Chris Rolland wrote that there may be a better semiconductor for AI processing. “2017 was the year of Artificial Intelligence GPU but might 2018 be the year of the ASIC?” Rolland wrote in his note on Tuesday. as the No. 1 theme of 2018 in the semiconductor sector.
A warning to Nvidia and AMD: GPUs may not hold AI chip crown forever - MarketWatch
What’s changed is a growing belief among some investors that AI could be a unique opportunity to create significant new semiconductor companies. Venture capitalists have invested $113 million in AI-focused chip startups this year—almost three times as much as in all of 2015, according to data from PitchBook, a service that tracks private company transactions.
The Race to Power AI’s Silicon Brains - MIT Technology Review