Artificial intelligence (AI) is a multi-billion dollar opportunity for chipmakers, according to Bernstein analyst Stacy Rasgon.
Rasgon said that AI could be the next big wave of growth in the semiconductor industry, and he believes it will drive demand for chips from companies like Intel, Nvidia and AMD. He noted that while these companies have already seen success with gaming and data center applications, they are now looking to capitalize on the growing demand for AI solutions.
“We believe this new wave of computing has significant potential,” Rasgon wrote in a note to clients Tuesday. “The market opportunity here is huge — we estimate total addressable market size at $50 billion by 2023.”
He added that chipmakers are well positioned to benefit from this trend as they can leverage their existing technology expertise and customer relationships to develop specialized products tailored specifically for AI applications. In addition, he believes there is an increasing need for more powerful processors as AI algorithms become increasingly complex.
Intel has already made moves into the space with its acquisition of Mobileye last year which gave it access to autonomous driving technologies such as computer vision and deep learning capabilities. Meanwhile Nvidia has been investing heavily in developing its own GPU-based platform called DGX which provides high performance computing power needed by many AI applications. AMD also recently announced plans to launch a new line of GPUs designed specifically for machine learning tasks later this year.
In conclusion, Rasgon believes that chipmakers have an incredible opportunity ahead of them if they can capitalize on the rapidly expanding artificial intelligence sector over the coming years. With so much potential up for grabs it’s no wonder why these companies are making major investments into developing specialized hardware solutions tailored towards specific use cases within this field – something which should help them remain competitive against one another going forward too!