Key Points
Elon Musk announced that Space Exploration Technologies (SpaceX) will exclusively use Nvidia (NASDAQ: NVDA) chips moving forward. This decision is expected to generate hundreds of billions in revenue for Nvidia.
While Nvidia remains a leader in AI model training, the inference market is projected to grow at a compound annual growth rate of 32% until 2032, reaching $1.3 trillion. In contrast, the AI training segment is expected to reach $658 billion during the same period. This shifting market landscape presents significant opportunities for Advanced Micro Devices (AMD) and Broadcom (NASDAQ: AVGO), which are positioned to excel in the inference market due to their cost-effective solutions.
AMD has secured two multiyear deals worth $100 billion with OpenAI and Meta, while also expanding its capabilities through strategic acquisitions. Meanwhile, Broadcom focuses on designing custom chips and anticipates its AI revenue will double each fiscal year, reaching $230 billion by 2028. Both companies are expected to outperform Nvidia given their strong positions in the inference market.
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