The Rise of Edge AI
The Samsung S24 review highlights the significant advancements achieved in the field of edge AI, a groundbreaking technology poised to reshape our interactions with technology. It possesses the potential to catalyze a novel era of computing, reminiscent of the exponential growth witnessed in the late 1990s.
Edge AI strategically redistributes computing power from centralized servers to the periphery of the network, closer to the source of data generation and processing. This crucial shift serves to minimize latency, enhance efficiency, and facilitate real-time decision-making. The true potential of AI is realized when it is seamlessly integrated with the cloud. Enterprises that invest in developing the requisite infrastructure, refining their AI expertise, and establishing a robust presence at the edge are well-positioned to capitalize on this burgeoning market.
While chat-based interfaces have garnered considerable attention, the future of AI lies in cultivating efficient workflows. The semiconductor industry, particularly players such as NVIDIA (NVDA), Advanced Micro Devices (AMD), and Qualcomm, stands to benefit significantly from the surging demand for cloud-based services and consumer hardware upgrades driven by the adoption of edge AI. Intel is also poised for substantial gains once domestic chip manufacturing commences in the United States, projected to occur around 2025. Data centers are grappling with a unique traffic type, particularly for AI training, necessitating extensive data transfers within and between data centers. Companies like Marvell Technology Group (MRVL) are well-positioned to capitalize on these data center transformations.
Among the tech giants, Google is leading the charge in integrating AI to benefit consumers, as showcased by the impressive S24 demos. Amazon, with its well-established edge presence, and Apple, renowned for its substantial edge presence, are also set to reap the rewards of edge AI's growth.
On the enterprise front, Microsoft is poised to make strides, with Azure capturing a significant share of enterprise cloud traffic. However, the company currently lacks a substantial presence in the consumer AI segment due to its limited penetration in the mobile sector, which accounts for a substantial 57% of internet traffic. Microsoft also faces stiff competition from emerging players like Palantir, as they offer superior integration of enterprise workflows for AI use cases.
The integration of AI into consumer products and services will pave the way for increased service revenues for these industry leaders. Edge AI has the potential to transform a diverse array of industries, including healthcare, transportation, and manufacturing, ushering in a new era of innovation and growth.
As of January 2024, in my personal opinion (not financial advice) several of the above players still have room to experience significant growth in 2024:
Marvell Technology Group (MRVL) Price Target : 98$
Qualcomm (QCOM) Price Target : 215$
Advanced Micro Devices (AMD) Price Target : 197$
Intel (INTC) Price Target : 69$
Palantir (PLTR) Price Target : 29$
Amazon (AMZN) Price Target : 190$
Google (GOOG) Price Target : 160$
