The Real AI Battle Isn't in Chips -- It's in Compute Efficiency. Here's the Stock Positioned to Win.

While investors are looking for who will be the big chip winner in artificial intelligence (AI), that's actually just half the battle. Nvidia (NASDAQ: NVDA) currently dominates the market with its graphics processing units (GPUs), while Advanced Micro Devices (NASDAQ: AMD) has been trying to gain traction in the GPU space and cut into its lead. At the same time, Broadcom (NASDAQ: AVGO) has been helping companies develop their own custom ASICs (application-specific integrated circuits) for AI workloads.However, as compute efficiency becomes more important, the company best positioned for this environment isn't a pure-play chip company; it's Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Let's look at why the company could be poised to be the big winner in the next phase of AI compute.The biggest bottleneck in the world of AI isn't currently a lack of chips; it's a lack of power. That's why compute efficiency is becoming so important. GPUs are great at quickly processing a boatload of data, but they are also energy-hungry. That's justifiable during the training phase of AI, as this is more of a one-time cost. However, as the shift gradually turns to inference, which is an ongoing expense needed to run these large language models (LLMs), compute efficiency becomes much more important.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool