The practical applications of artificial intelligence (AI) continue to expand across various industries, and venture capitalist Jim Breyer believes that two companies are well-positioned to benefit from widespread AI adoption. Breyer, the founder and CEO of Breyer Capital, recently joined CNBC’s “Squawk Box” to discuss the potential of AI and its impact on different sectors.
One of the areas that Breyer highlighted as having significant AI use cases is healthcare, particularly in drug discovery and development. He emphasized that advanced healthcare-focused AI applications, including imaging and data optimization, require high-end hardware from Nvidia Corporation (NVDA) and Advanced Micro Devices, Inc (AMD).
Breyer expressed his optimism about Nvidia’s future, describing it as an “underappreciated AI story” in early 2023. He pointed out that the company’s software layer, built around its chip, is highly sought after by the companies he invests in. Nvidia’s stock gained more than 230% over the course of the year, and Breyer believes that the company will continue to thrive.
In addition to Nvidia, Breyer also expressed confidence in AMD’s potential growth due to the increasing demand for AI-related hardware. KeyBanc analyst John Vinh hosted investor meetings with AMD executives and noted their high confidence in the company’s $2 billion outlook for its MI300 compute accelerators in 2024. Vinh also highlighted AMD’s ability to compete with Nvidia, especially in inferencing, thanks to its high-bandwidth memory content.
AMD’s stock has already experienced significant growth, rising more than 140% over the past year. Breyer predicts that as the demand for AI-related hardware continues to increase, AMD’s stock will continue to climb. He even suggested that its market capitalization could reach the size of some of the biggest mega-cap tech names.
Both Nvidia and AMD have played crucial roles in providing the necessary hardware for AI applications across various industries. Their high-end chips and advanced technologies have enabled companies to leverage AI’s power in areas such as healthcare, finance, and autonomous driving. As AI continues to advance and find more practical applications, the demand for their hardware is only expected to grow.
In closing, Jim Breyer’s endorsement of Nvidia and AMD as key players in the AI space underscores the importance of high-end hardware in supporting advanced AI applications. Both companies have a strong track record and are well-positioned to benefit from the increasing adoption of AI across industries. As AI continues to revolutionize various sectors, the demand for their products is likely to soar, driving further growth for Nvidia and AMD.
