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End-Device AI Is the Most Underrated Opportunity: How to Profit From AI-Related Stocks

Last Updated December 7, 2023 3:56 PM
Giuseppe Ciccomascolo
Last Updated December 7, 2023 3:56 PM

Key Takeaways

  • End-device AI is a rapidly growing and potentially lucrative market.
  • There are several companies well-positioned to benefit from the growth of end-device AI.
  • Investors should consider investing in stocks of companies that are involved in this sector.
  • Bank of America unveils which these stocks are . 

In the realm of artificial intelligence (AI), the term “end-device AI” has emerged as a significant and often overlooked investment opportunity. While cloud-based AI has garnered widespread attention, end-device AI is quietly revolutionizing the way we interact with technology, offering a host of benefits that are poised to transform various industries.

At the heart of end-device AI lies the ability to process AI tasks directly on the device itself, eliminating the need for data transmission to and from remote servers. This shift towards localized processing brings about a multitude of advantages, including enhanced privacy, reduced latency, and improved user experience.

As AI algorithms become increasingly sophisticated, the need for more powerful hardware on end devices is growing. This demand is creating a lucrative market for companies that design and manufacture chips specifically for AI applications.

According to Bank of America, these eight companies will be the major beneficiaries in the impending boom of end-device AI:

TSMC (Taiwan Semiconductor Manufacturing Company)

Renowned for advanced chip manufacturing, TSMC  operates as a foundry, supplying chips to other companies. With technological expertise, extensive capacity, and a broad client base, TSMC is on track to capitalize on the escalating demand for end-device AI chips.

Qualcomm

A leading “fabless” company, Qualcomm  excels in semiconductor chip design. It holds a global leadership position in smartphone chipsets. It has also been a pioneer in integrating AI into smartphones and edge devices. Expanding beyond smartphones, Qualcomm is venturing into IoT and advanced vehicle technology.

MediaTek

Another notable “fabless” company, MediaTek  specializes in chip design for various devices and is making significant strides in AI. With prominent partners like Nvidia and a strong presence in the smartphone/IoT market, MediaTek may lead in the end-device AI sector.

Nordic Semiconductor

Based in Norway, Nordic Semiconductor  focuses on wireless connectivity chips, particularly for devices like smartwatches. Specializing in Bluetooth Low Energy, it is also exploring other wireless technologies.

STMicroelectronics

As a global chip manufacturer serving diverse industries including cars, phones, and networks, STMicroelectronics  produces power-related products for AI applications, ranging from general computing chips to specific AI-enhancing components.

Infineon

Infineon  is a leading semiconductor company with a robust presence in the automotive, power, and smartcard sectors. It also collaborates closely with major car manufacturers, tech companies, and payment solution providers.

SK Hynix

As the foremost supplier of “high bandwidth” memory, crucial for Nvidia’s popular AI training devices, SK Hynix  plays a pivotal role in the AI ecosystem.

Renesas

Focusing on endpoint AI for information processing on terminals and edge AI for closed network processing, Renesas  is developing a unique AI accelerator to address power consumption challenges, particularly pertinent to endpoint and edge AI.

For potential investors, diversifying across these companies would be good to seize the burgeoning opportunities in the end-device AI sector. However, it’s crucial to exercise caution and only invest what one can afford to part with, given the inherent volatility of AI investments. As with much of the tech industry, AI investments can be akin to a rollercoaster ride with potential significant fluctuations.

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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