This Artificial Intelligence (AI) Chip Stock Is Dominating the Inference Era. It Could Be the Biggest Winner of This Megatrend (Hint: It’s Not AMD or Broadcom)

Nvidia’s Dominance in AI Inference Market: Despite CPUs and custom AI processors being considered suitable for running AI inference workloads, Nvidia continues to dominate the market for AI inference chips, controlling 74% of the market as of the first quarter of 2026.
Shift from AI Training to Inference: AI is transitioning from training to real-world application, known as inference, which involves deploying trained models to execute tasks with real-time inputs. This shift is expected to drive significant changes in AI computing and increase the AI inference workloads to two-thirds of AI data center computing power by the end of this year.
Growth of Semiconductor Companies: Broadcom and AMD are benefiting from the growing demand for AI inference. Broadcom has partnerships with major AI companies and expects substantial revenue growth, while AMD is seeing accelerated growth due to demand for its server CPUs for inference tasks.
Competitive Landscape: While Broadcom and AMD are gaining from the shift to inference, they remain behind Nvidia, which remains the dominant player in AI inference. This is because AI inference tasks require less computing power compared to training, making CPUs and ASICs more suitable, but still benefiting from the substantial investments in AI data centers.