AI has taken the world by storm in recent months as the technology, which was largely a work in progress, hit the masses thanks to the ChatGPT breakthrough.
If the AI frenzy is currently mainly about the first step in machine learning (training), the second step (inference), is slowly but surely becoming the key for AI’s mass adoption and is likely to become another massive growth driver for the Tech industry in the next couple of years as most organizations roll out AI services and apps.
AI is indeed the underlying and necessary base for many new technologies including autonomous driving, robotics or the Internet of Things and the increasing complexity of training deep learning models is having a profound impact on the cloud computing architecture.
Hyperscalers are notably redesigning their cloud infrastructures with data transfer speed and energy consumption optimization in mind.
Longer term, quantum computing emerges as the next step in high-performance computing.
As AI is expected to open up new revenue opportunities and bring major efficiencies, it should gradually become pervasive and provide a material boost to GDP over coming years.
A multi-year investment cycle is then in sight to train AI and deliver AI services to customers at scale, an obvious positive for semiconductors, software and data center providers.
Industrial and consumer goods companies should also have the opportunity to leverage their installed base of IoT products and devices (cars, robots, industrial machines…) to offer a wide range of connected digital services (self driving, remote monitoring and maintenance…) and over-the-air options through subscription-based models.
Chip equipment makers have been hit in recent days and weeks by the intensification of export controls to China and by order delays as manufacturers are experiencing troubles in building their new fabs. Most notably, Taiwan Semiconductor (TSMC)’s $40 billion Arizona plant is running behind schedule. Accordingly, Dutch equipment giant ASML delivered this morning a…
There’s been a lot of attention in recent months about the computing power requirements of Artificial Intelligence and the rise of various pieces of hardware (GPUs, ASICs, TPUs…) used to train massive data models. Surprisingly, there’s been much less hype around software and, specifically, around data science and analytics software that appears as important as…
Electronic Design Automation (EDA) is the bedrock of modern digital transformation, encompassing software-based tools used by all semiconductor companies to design cutting-edge chips and complex integrated circuits that power our technological landscape. EDA has, accordingly, accompanied the growth of the semiconductor industry over the years. Looking forward, the growth pace of the main EDA players,…
As we commented a couple of months ago, generative AI has been emerging as a weapon for hackers, making phishing attempts (emails or texts inviting a user to open a malicious link to steal his/her credentials) bespoke and then much harder to detect, and helping to reduce malware software development cycles and/or rewrite code to…
If all investors’ eyes are currently focused on increasing microprocessors’ performances and speeds, a bottleneck is nevertheless emerging in AI training. This is called the memory wall, or the growing speed difference between microprocessors and computer memory, hence leaving the processing units idle until the requested/needed data becomes available for computing. The recent explosion of…
Even if data is widely considered as the oil of the 21st century, it has been largely under-monetized until now. As an illustration, OpenAI developed ChatGPT with massive amounts of data, free of charge… But data-rich companies, such as social media, have taken notice and the situation is rapidly evolving with both Twitter and Reddit announcing…
As the growth in data centers’ construction continues at an unabated pace around the world – hence sustaining investments in semis, software, networking, and storage solutions – the rise of Generative AI services (e.g., ChatGPT) is literally triggering a little revolution inside them. The workloads (training and inference) of these Deep Learning models necessitate an…
Nvidia’s last night earnings report was impressive, to say the least. The company notably guided to a 64% top-line growth in Q2 (53% above consensus!), including c.100% year-on-year growth in its data center segment. This strength should not come as a total surprise given that most companies are currently racing to deploy AI applications and…
The phenomenal success of Generative AI (GAI) services like ChatGPT or DALL-E has literally triggered an arms race amongst AI’s world leaders as the accuracy level coupled to the creative skills of GAI models are disrupting the $120bn annual revenue generating Web search industry (still heavily dominated by Google) as well as the nascent AI-based…
The so-called Moore’s law, promulgated by Intel’s co-founder Gordon Moore in the mid-60s, states that the number of transistors in an integrated circuit (or IC) doubles every two years. Contrary to what many media said and are still saying nowadays, the doubling of IC’s density doesn’t mean that semiconductor chips are twice as powerful every…
ChatGPT literally took the world by storm since its release in November 2022. The chatbot is so successful that it added 1 million users in only 5 days, slashing the iPhone’s (74 days) and Instagram’s (2.5 months) previous adoption speed records. OpenAI, the company behind ChatGPT, was founded in 2015 and backed by prominent figures…
Semiconductor stocks have suffered an across-the-board selling in recent months thanks to the rapid deterioration of several end-markets (PC, smartphones…) and new export controls imposed by the US government on chips and equipment shipped to China. But this “implosion” could also create buying opportunities as some end-markets and, more specifically, the data center one enjoys secular…
NAV & Performance
ISIN
CH1263269362
Currency
USD
Type
Active Equity
Issuer / Rating
UBS / S&P A+
Inception Date
10.05.2023
Liquidity
Daily