Nvidia (NVDA) -) this year became the preferred method of exposure to the artificial intelligence sector for many investors. Shares of Nvidia — which sells the computer chips necessary to run AI models — have more than tripled for the year, up 230%.
Nvidia's GPU chips remain integral to many of the most prominent AI models out there, with OpenAI's ChatGPT and Tesla's Dojo Supercomputer alike taking advantage of thousands of Nvidia chips to run.
Intel (INTC) -), in a bid to push into that lucrative market, unveiled a series of new computer chips on Dec. 14, including an AI chip that could compete with Nvidia's workhorse H100 GPU.
Related: Nvidia CEO Jensen Huang has a bold claim about the exponential progress of AI
At its "AI Everywhere" launch event, the company unveiled two computer chips — the 5th generation Xeon processor, built with AI acceleration capability and the Ultra mobile processor family — in addition to its Gaudi3 AI chip, which the company said will be arriving next year.
The chip, according to Intel CEO Pat Gelsinger, is designed for deep learning and large-scale generative AI models. With demand for such models (and the chips that power them) steadily climbing, Intel said that it expects to "capture a larger portion of the accelerator market in 2024" in a push led by Gaudi.
“AI innovation is poised to raise the digital economy’s impact up to as much as one-third of global gross domestic product,” Gelsinger said in a statement.
“Intel is developing the technologies and solutions that empower customers to seamlessly integrate and effectively run AI in all their applications — in the cloud and, increasingly, locally at the PC and edge, where data is generated and used," he added.
Shares of Intel, which closed Thursday up 1.37% to a share price of $45.18, lifted another 2% in pre-market trading. The company's stock is up more than 70% for the year.
Get exclusive access to portfolio managers’ stock picks and proven investing strategies with Real Money Pro. Get started now.
