AI Industry Trends and the Role of Semiconductors

The Connection Between AI and the Semiconductor Industry

Current State of AI Seen Through the Deepseek Issue

• The recent Deepseek controversy has prompted a re-examination of the direction of the AI and semiconductor industries.
• The controversy over AI performance implemented with $5.7 million has shaken the market, emphasizing the message of semiconductor usage and technological advancements.
• However, there is no definite conclusion on actual cost issues or technology usage, so it is time to approach with caution.

Big Tech Companies’ Semiconductor Investment Moves

• It has been confirmed that large companies such as Microsoft, Meta, and Alphabet are increasing the pace of their semiconductor investments.
• Semiconductors remain an essential resource, indicating the need for greater investment and improvement for AI advancement.
• This suggests an inevitable investment for the monetization of AI.

Investment and Competition Structure Emerging in the AI Industry

Narration of Technological Innovation

• NVIDIA oversaw the rapid evolution from semiconductors to a software platform.
• CEO Jensen Huang’s vision delivers the message of ‘monetization beyond hardware,’ giving a new direction to the semiconductor industry.
• Memory semiconductors are also continuously discovering opportunities in these new investments and directions.

AI’s Empty Land and the Land Grab Among Companies

• As big tech companies move into the semiconductor realm, NVIDIA simultaneously advances to a higher-level platform, forming a new competitive landscape.
• While their territories do not yet fully overlap, there is a high possibility of them intersecting in the long term.
• AI’s vacant market (monetization structure) is growing, providing direction for investment.

Observing the Future of Semiconductors and AI

Entering the AI Monetization Phase

• Moving from the initial investment phase of AI to a flow of efficiency → optimization → monetization.
• In particular, the point at which AI generates substantial profits in the B2B and B2C sectors is approaching.
• Example: In B2C, the possibility of a subscription-based monetization model for on-device AI functions is receiving attention, and devices such as smartphones are forcing a new level of service.

NVIDIA and Jensen Huang’s Vision

• NVIDIA is foreshadowing broad industrial changes by extending AI monetization to physical areas such as robots and autonomous driving.
• The high computing power requirements that appear in the AI inference stage also show the continued need for semiconductor investment and development.

Implications for the Global AI Environment and Regulations

U.S. AI Leadership and Sanctions

• The United States is showing moves to strengthen semiconductor technology and maintain its global monopoly.
• Sanctions from figures like Trump and the U.S. government can have a significant impact on the direction of AI and technology development.
• Although there are issues such as the Deepseek controversy in the short term, semiconductors will ultimately remain an essential area.

Key Points from an Investment Perspective

Criteria for Judging AI-Related Stocks

• You should examine how to generate revenue from semiconductors to software and to the final consumer.
• Companies with a strong foundation in hardware monopolization and early subscription economy building are likely to receive higher valuations.

Semiconductor Supply and Market Outlook

• The pace of semiconductor investment may slow down, but qualitative improvement becomes an important task.
• Initial investment is a prerequisite for monetization, and attention should be paid to the movements of major companies (developer conferences, earnings announcements, etc.).
• Strategies and announcements by NVIDIA, Microsoft, etc. determine the trends of semiconductor-related stocks.

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< Summary >

• AI is not over, and semiconductors will continue to remain an essential resource.
• The pace of semiconductor investment may slow down, but it will be organized in an efficient and optimized direction.
• The Deepseek controversy is an interesting issue and an opportunity to redefine the evolution direction of semiconductors and AI.
• Both B2B and B2C are preparing for radical changes with AI monetization models, with particular attention being paid to platform and subscription economy expansion.
• Companies such as NVIDIA are creating new industrial ecosystems by expanding their domain from hardware to software.
• Although there are short-term uncertainties such as global sanctions and semiconductor supply and demand, AI investment will continue.

[More…]

• “New Opportunities in AI and Semiconductors” > https://nextgeninsight.net/?s=AI
• “Analysis of Semiconductor Demand and Investment Trends” > https://nextgeninsight.net/?s=%EB%B0%98%EB%8F%84%EC%B2%B4

*YouTube Source: [이효석아카데미]

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