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Why are AI chips so valuable?

Artificial intelligence relies heavily on powerful microchips to process vast amounts of data quickly. As AI technology expands into more areas, the demand for these specialised chips skyrockets. Companies like AMD and Nvidia, which design and produce these essential components, see their value increase as investors bet on their crucial role in the AI revolution.

Stories that explain this

AMD joins Nvidia in $1 trillion club as AI demand surges

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What's a 'trillion dollar club?' What are semiconductor firms? How do share prices go up? What are AI chips for? Why are AI chips special? Why does AI need so many chips? Why are chips getting pricier? Where are chips made?

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