10. November 2021 | 12:53 CET
AMD, BrainChip, Nvidia - Profiting from Artificial Intelligence
The first research into artificial intelligence (AI) began in the 1950s, but it was quite a while before any real progress was seen. This was largely due to ever-faster processors that could process even the largest amounts of data much faster than the old mainframes. We can see what artificial intelligence is capable of in digital assistants like Siri, Alexa, or translation programs like Google. In the coming years, artificial intelligence will penetrate more and more areas and automate many processes that were unthinkable until recently. Today we analyze three companies that produce hardware for the AI sector.
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ISIN: ADVANCED MIC.DEV. DL-_01 | US0079031078 , BRAINCHIP HOLDINGS LTD | AU000000BRN8 , NVIDIA CORP. DL-_001 | US67066G1040
AMD - Deal with Meta causes share price fireworks
AMD supplies its customers with hardware for the data centers where artificial intelligence processes incoming information. There, high-performance computing solutions are needed to carry out the multitude of computing tasks in parallel. These data centers then often offer cloud services, which has the advantage for customers that they do not have to purchase and maintain their own infrastructure. With the AMD EPYC processor, the Company has probably the fastest processor in the world currently.
That might also be one of the reasons why Meta, formerly Facebook, has chosen AMD as a supplier for its servers. An adapted third-generation EPYC processor will be used there. Last week's quarterly figures already showed how well the Company is currently doing. The analysts' expectations were exceeded, and the turnover increased by 54% to USD 4.31 billion, and the profit was USD 0.73 per share. Experts had expected 6 cents less.
The deal with Meta will undoubtedly make it easier for the Company to win over major customers in the future. The newly fueled crypto hype will also keep GPU sales numbers high in the future. Since the beginning of October, the stock has been able to gain from around USD 100 to currently USD 150.16. As an interested investor, you should wait for a setback before getting in.
BrainChip - Akida sale has started
Australian Company BrainChip is taking a different approach to traditional AI. In so-called Edge-AI, i.e. Artificial Intelligence on Internet-of-Things or mobile devices, one supports the processing of data using AI on the device itself. The advantages are obvious. No Internet connection is required. The data does not have to be sent to the cloud for processing first. Thus, the technology can calculate faster. It also only reacts when an event occurs, which saves power. In addition, data security is significantly higher.
For this purpose, the Company has developed the Akida chip, which masters neuromorphic computing and imitates the human brain, thus learning and processing information. The chip does not need a CPU but works autonomously, requires little power, generates hardly any heat and is secure from a data protection point of view because no data is passed on to the outside. On October 20, the Company was able to announce the start of sales for two development kits. There is both an x86 PC development kit and an ARM-based model on the Raspberry Pi.
The application areas for Akida range from autonomous driving to security technology, medical devices, IoT devices, industrial robots and safety technology. On the one hand, BrainChip wants to sell the chips; on the other hand, it wants to put the intellectual property in the hands of manufacturers, who then have to pay royalties to the Company. The stock has also been traded on the OTCQX Best Market in the US since November 3. The security has already jumped with news of the sales start and is currently trading at 0.51 Australian dollars (AUD). If larger orders or licenses are announced, the high for the year at AUD 0.77 is likely to be tested.
Nvidia - BEYOND event shows the vision of the future
Nvidia has long been considered a graphics card maker, but even though that business is still humming, another area has increasingly worked its way to the forefront, artificial intelligence. The Company has created a Data Center division that will replace the graphics card division as the revenue driver. Whether it's Deep Learning or Artificial Intelligence, Nvidia's hardware handles the tasks. With the takeover of ARM, another step would be taken in the direction of leadership in AI. However, the deal has not yet received final approval from the authorities.
At the virtual BEYOND event on November 9, Raymond Teh, Nvidia's vice president of sales and marketing, presented his visions for the Company's future. In AI, he sees the development of autonomous driving dominating every car in the future. The Company then announced that it is now possible to develop personal assistants and chatbots using AI with the help of the NeMo Megatron framework. These AI avatars get a face with Omniverse and can be available to customers virtually around the clock. It also unveiled a new Superswitch that has not only more power but also uses less power.
In the future, the Company still wants to offer cloud gaming and thus further boost the growing data center business. Further growth is also possible in graphics cards with the new Bitcoin hype. Since the beginning of October, the stock has risen a good 50% and is currently trading at USD 308.04. As with AMD, it is important to wait for a setback here first.
In the long term, artificial intelligence will influence our everyday lives more and more. Therefore, such promising shares belong in every portfolio. AMD is currently benefiting from its fast CPUs and was able to win a renowned partner in Meta. BrainChip is pursuing a different approach, which is very exciting. Even though the Company is still relatively small, it seems to have a head start on the big players that want to pull everything into the cloud. Nvidia is one of the most prominent AI players. If the takeover of ARM succeeds, the entire value chain will be covered.