Artificial intelligence (AI) is evolving, and the next big trend in the technology is agentic AI — software that can be given somewhat complex tasks to perform and then handle them independently with little to no additional human oversight.
There should be a number of winners across this trend, including within the chip, cloud computing, and software spaces
I believe these three companies will be among the biggest beneficiaries in each of these areas. AMD: An agentic AI chip winner While AI model training requires the parallel processing muscle of large numbers of powerful graphics processing units (GPUs), agentic AI needs more central processing units (CPUs), which are designed for sequential processing. As Intel CFO David Zinsner recently explained, because of that shift in usage toward agentic AI, the ratio of GPUs to CPUs in data centers, which not long ago was 8 to 1, and is currently 4 to 1, is headed toward 1 to 1.
That’s a huge opportunity, and one of the companies best positioned to take advantage of it is Advanced Micro Devices (NASDAQ: AMD), which has consistently taken market share in the server CPU space. AMD has pegged this as a $120 billion opportunity in the next few years, while Nvidia’s CEO recently called it a $200 billion opportunity. AMD is already starting to produce CPUs designed specifically for agentic AI with its new Venice CPUs manufactured using Taiwan Semiconductor Manufacturing’s latest 2-nanometer technology.