Meet the Artificial Intelligence (AI) Inference Stock That Could Deliver the Biggest Gains Over the Next 3 Years (Hint: It's not Nvidia or Broadcom)

Artificial intelligence (AI) compute workloads in data centers are now shifting toward inference. Deloitte estimates that inference workloads will account for two-thirds of AI-focused computational workloads in data centers this year, up from 50% in 2025.This has led to a strong jump in demand for chips capable of executing inference workloads cost-effectively. Nvidia currently leads the market for AI inference chips. That isn't surprising, as the company is aggressively reducing the cost of running inference workloads with its chip systems. On the other hand, custom AI chip designer Broadcom is also witnessing phenomenal acceleration in revenue and earnings.However, both semiconductor stocks have delivered paltry, single-digit gains this year. They have underperformed the PHLX Semiconductor Sector index, which has jumped 86% this year, by a huge margin. Their poor performance can be attributed to their valuation. Broadcom trades at an expensive 61 times earnings and 24 times sales. While Nvidia stock is significantly cheaper at 30 times earnings and looks like a bargain, its sales multiple of 18.6 is on the expensive side.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool