NVIDIA (NASDAQ:NVDA) has been a clear winner in the AI space this year with a nearly 182% price gain. Now, its rivals are racing to catch up.
Amid sliding data-center revenues, Advanced Micro Devices (NASDAQ:AMD) is banking on the launch of its MI300 AI accelerator chips this quarter, according to the Wall Street Journal. The company expects AI chips to bring in $2 billion in revenue next year. Additionally, it is expected to shed light on its new AI offerings at an event tomorrow.
Intel (NASDAQ:INTC) is aiming to regain lost ground after seeing a sales contraction over the past two years. The semiconductor giant is expected to showcase its new AI chips and related products at an event on December 14. Recently, Intel has announced investments in chip-making facilities in major markets, including Europe.
While investors and Wall Street pundits are largely focused on domestic chip majors, Chinese companies could make an AI splash of their own over the coming periods. China aims to increase its computing capacity from 197 exaflops at present to over 300 exaflops by 2025. These efforts to bolster its technological capabilities are in response to the U.S. restrictions on exports of advanced technology, including NVIDIA’s chip solutions, to the country. This focus on domestic tech production could boost the AI fortunes of Chinese tech majors, such as Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU). Japan has also announced a $13.60 billion chip investment and some of these funds will be used to support Taiwanese chip major TSMC (NYSE:TSM).
What Is the Target Price for NVDA?
Meanwhile, the Street has a Strong Buy consensus rating on NVIDIA, and the average NVDA price target of $661 points to a 45.2% potential upside in the stock. On the other hand, the TipRanks Comparison Tool indicates that Intel shares could decline by nearly 12%.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
