An article published by Tianfeng International analyst Ming-Chi Kuo on Medium pointed out that investors' interest in AI supply chain stocks is gradually shifting from traditional cloud computing to the field of edge computing. This shift is partly attributed to the growing impact of declines in traffic in large language models such as ChatGPT on AI stocks. With the continuous development of AI technology, edge computing is becoming a new focus of investors due to its lower latency and higher data security.
In the field of AI hardware, Nvidia's CoWoS (Chip on Wafer on Substrate) technology's quarter-on-month growth rate is expected to slow down in the fourth quarter. This trend may prompt some short-term investors to choose to take profits, which will put short-term pressure on related stocks. However, in the long run, the AI industry is still in a rapid development stage, and investors are still actively looking for potential beneficiaries who have not yet fully reflected the positive trend of AI.
The rise of edge computing is closely related to the evolution of AI technology. With the popularity of IoT devices and the deployment of 5G networks, more and more data processing needs are shifting from the cloud to the edge devices. This transformation not only reduces data transmission delay, but also improves the efficiency and security of data processing. Therefore, companies focusing on edge computing technology are expected to gain more investors in the future.
Although AI supply chain stocks may face some adjustment pressure in the short term, in the long run, the widespread application of AI technology will still promote the development of related companies. Investors need to pay close attention to changes in technology trends and the roles different companies play in the AI ecosystem in order to seize investment opportunities in a rapidly changing market.
In general, the focus of investment in the AI industry is shifting from cloud computing to edge computing, a trend that reflects a new direction of technological development. Investors should maintain a keen insight and focus on companies that can make breakthroughs in emerging technologies to seize the investment opportunities brought by the AI era.