Nvidia and AMD have dominated the chip market in recent years. Chip continue to be profitable, from connected cars to connected home speakers, while the process of making chips is increasingly challenging for the companies that make them.
The truth is that the best chip companies are two, Nvidia and AMD. These two are capable of processing techniques that include artificial intelligence and are pioneers in the GPU, that is, the graphics processing unit. Today there is endless demand for the chip sector, but problems tend to appear in the GPU. This is also evident from the falls shown by the markets of Nvidia and AMD this year.
The trends that define these two companies go deeper than the uncertainties of the current stock markets, and the main problem lies in the management of artificial intelligence problems in the GPU market. Specifically, Nvidia holds about 80% of the market for training neural networks. The process involves large numbers of parallel computing operations that involve vectors and matrices to find a hidden organization of connections between data points. Also, Nvidia's profits are expected to increase by 22% by the end of January compared to the previous year. On the other hand, AMD is as important as Nvidia when it comes to artificial intelligence and is known as the second only carrier of a GPU chip.
It should be noted that Nvidia's profits reached $91 billion compared to AMD's $20 billion. Nvidia seems to have a primary role in the chip market.
However, the biggest threat to both companies is that the rapid growth of artificial intelligence is leading more and more startups to completely change the landscape and make the GPU a thing of the past. Already yesterday, there were startups that declared that they had found a great alternative to the GPU for computing artificial intelligence, already having the support of large financial contributions from Microsoft and BMW, close to $ 200 million. There are countless startups that are operating in a similar way in the chip sector. All are trying to innovate to replace the GPU, but the right management is what will help the reliable companies Nvidia and AMD continue to be rewarded in the demanding market of artificial intelligence.
