Move Over, Nvidia GPUs. The AI CPU Era Is Here

Ever since ChatGPT launched in Nov. 2022, one AI stock has stood head and shoulders above the others.

That’s Nvidia (NASDAQ: NVDA), as the GPU-maker has jumped nealry 1,000% since then, adding more than $4 trillion in market cap to make it the most valuable company.

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However, Nvidia’s time in the limelight may be fading. The stock has traded sideways for the last six+ months, and investors seem to be moving on to other AI bets. Memory stocks like Micron have soared during that period, as there is now a shortage of high-bandwidth memory chips, which are crucial for running AI applications.

Now, there is a sign that another chip could be on the verge of a breakout: the CPU, or central processing unit.

In the initial wave of the AI boom, the CPU was largely forgotten as companies spent wildly on GPUs from Nvidia. Back then, the emphasis in AI was on training, which is heavily dependent on GPUs.

Now, more AI infrastructure spending is going toward inference, which is more dependent on CPUs, which is likely to be the major driver of compute activity at established large language models (LLM).

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