Published: July 18, 2017 2:25 p.m. ET 8
BloombergThe future is super-processors for artificial intelligence.
By
TRADING DECK COLUMNIST
It is increasingly looking like the future belongs to artificial intelligence.Two of the hottest stocks in that industry are Nvidia NVDA, +0.05% and Advanced Micro Devices AMD, -0.07% The strength of those stocks is largely attributable to the excitement around the artificial-intelligence capabilities of their processors.A key to success in hot technology companies is to keep an eye on newly developing competition. Prudent investors tend to sell into strength when new competition emerges. The momo (momentum) crowd is often left holding the bag.Increased competition may be coming to Nvidia and AMD in the form of a new artificial-intelligence processor that’s 10 times more powerful than their current offerings. Let’s take a look at this. First, a chart.
New competitor is a heavyweight The new competitor is Fujitsu FJTSY, +4.47% of Japan. Fujitsu was founded in 1935 and employees 159,000 people in more than 100 countries. Fujitsu produces some of the most advanced processors for super computers. Fujitsu also produces processors for SPARC servers. SPARC servers have been popular and are now owned by Oracle ORCL, +0.08% after the company bought Sun Microsystems.The new processor from Fujitsu will consist of 16 deep-learning processing elements, each of which will contain eight execution units. Fujitsu is targeting 10 times the performance of Nvidia and AMD processors. The new processor will be available in 2018.
Read more: http://www.marketwatch.com/story/nvidia-and-amd-must-brace-for-competition-from-a-super-powerful-artificial-intelligence-processor-2017-07-18?siteid=yhoof2&yptr=yahoo
