The AI Inference Supercycle Is Here.
These 2 Stocks Will Be the Biggest Winners of This Megatrend (Hint: It’s Not Broadcom or Intel) There is a major shift happening in the artificial intelligence (AI) infrastructure market
While a significant chunk of the spending on AI hardware, such as chips and networking components, has been directed toward the training of large language models (LLMs) so far, inference workloads are now gaining significant traction. The training phase requires a lot of computing power and huge datasets to ensure that the model is trained accurately and is fit for real-world usage. The inference phase, on the other hand, is putting the trained AI models to work in the real world by feeding LLMs new data.
In simpler words, training models is like preparing for an exam, going over a lot of course material. Inference is akin to answering questions in an exam based on what one learned from the course material. This explains why chip designers such as Broadcom and Intel have been witnessing healthy demand for their inference-focused AI processors.