How AI is affecting the Semiconductor Industry
Artificial Intelligence is increasing its presence at a rapid pace. Market value of chip companies is going to increase by about 35-40% in coming times. It is raining gold in the AI market after the advent of generative models like Chat GPT. Recently, NVIDIA, a semiconductor chip maker, said that it is expecting sales of around Rs 90,000 crore in the current quarter. On May 30, the company's market value reached Rs 82 lakh crore.
Future Market for AI
The business of other chip companies including Advance Micro Device (AMD) and Taiwan's Taiwan Semiconductor Manufacturing Company (TSMC) is booming. After the launch of CHAT GPT in November, the market index of such companies has increased by 40%. While the Nasdaq index of other tech companies has increased by 13%.
New technology infrastructure is emerging. Microsoft has over 2500 customers using the technology service of Open AI, the creator of CHAT GPT. Google's parent company Alphabet has six products with more than two billion users worldwide. There is a plan to use Generative AI in these.
Chip makers are benefiting the most from the increase in demand for computing power. NVIDIA and chip design company AMD and chip makers TSMC are in high demand..
Shares of chip maker TSMC are up 10%. If the market value is to be believed then it has crossed 1.64 lakh crores. The business of companies adding chips to a single processing unit is also increasing. Dutch company Bessie has control over three quarters of such a market. Union Bank of Switzerland (UBS) estimates that GPUs need switches, routers and specialist chips to function as a data center. The market value of such devices will increase by 40% every year for the next few years.
