Chip giant Nvidia (NVDA) has been at the center of the market rally, reaching record highs in February. However, as more investment is poured into AI, some fear the potential for a bubble to form. Citi Head of US Semiconductor Research Chris Danely joins Yahoo Finance to share his perspective about the AI sector's continued room for growth, despite the fact that AI hardware like semiconductors historically experiences cyclical growth. Danely is particularly bullish on semiconductors, sharing his top pick within the sector: "We've all identified Nvidia as the clear AI leader. I guess in this sort of instantaneous market, they're almost yesterday's news in terms of AI. What we think is going to be the next group of semiconductors or product of semiconductors that's going to have the AI mentioning is going to be memory and specifically DRAM. So, clearly, there's a lot of graphics chips going into it, clearly there's a lot of ethernet chips that Broadcom (AVGO) makes...We think that's the next positive catalyst for the AI market, but you're just starting to see memory come into play as, wow, we need more of this, this is in shortage, and Micron (MU) is the top pick on the DRAM space for us. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino
Advanced Micro Devices hit a U.S. government roadblock in its efforts to sell an artificial intelligence chip tailored for the Chinese market, as part of Washington's crackdown on the export of advanced technologies to the country, Bloomberg News reported on Monday. AMD tried to gain a go-ahead from the U.S. Commerce Department to sell the AI processor to China. The chip has lower performance than what AMD sells outside of China, and was designed to meet U.S. export restrictions, the report added, citing people familiar with the matter.
AMD tried to gain a go-ahead from the U.S. Commerce Department to sell the AI processor to China. The chip has lower performance than what AMD sells outside of China, and was designed to meet U.S. export restrictions, the report added, citing people familiar with the matter. U.S. officials said the processor is still too powerful and that the company must obtain a license from Commerce's Bureau of Industry and Security to sell it in China, according to the report.