Forget ChatGPT – this “game-changing” technology will power the next wave of AI: Goldman

  • According to Goldman Sachs, the advanced chip manufacturing technology known as EUV will “enable the next wave of AI.”
  • Goldman analyst Alexander Duvall believes the technology could boost the semiconductor industry to more than $1 trillion.
  • “This is a game-changer for the semiconductor industry. I don’t think this is rocket science. It’s harder than rocket science,” he said.

ChatGPT’s sensational debut heralded the rise of artificial intelligence as a transformative technology this year, sparking a wave of excitement among investors and businesses.

The AI ​​theme will take the stock market by storm in 2023, driving incredible gains in technology stocks like Nvidia, Metaplatform, and Tesla, and pushing broader stocks like the S&P 500 despite looming recession risks. It also contributed to the rise in the index.

But it all may be just the beginning.

The next wave of AI will be enabled by an advanced chip manufacturing technique known as extreme ultraviolet lithography (EUV) and will transform high-brightness computing infrastructure, according to Goldman Sachs.

Cutting-edge technology will boost the global semiconductor industry from $600 billion today to $1 trillion by the end of this decade, according to Alexander Duval, principal analyst for European technology hardware and semiconductors at Goldman Sachs Research. He says he will.

“The next stage in the evolution of EUV, the development of the latest version of this technology known as high NA, is a technology that has taken more than 20 years to perfect. “For something as big as Earth, the biggest wound would be smaller than a fingernail,” the Wall Street bank said in a recent note.

Semiconductors serve as the foundation of the AI ​​industry, driving up stock market valuations for chipmakers. Nvidia was the best performer on the S&P 500 index this year with an impressive 222% gain. Rival AMD is 78% ahead.

In late May, Nvidia joined Apple, Microsoft, Alphabet, and Amazon in an exclusive club of companies with market capitalizations of more than $1 trillion.

“It’s harder than rocket science.”

“This is a game-changer for the semiconductor industry,” Goldman’s Duvall said, referring to EUV technology. “This is not rocket science, and I think it’s harder than rocket science.”

“We believe this is key to facilitating the production of increasingly powerful chips for use cases such as AI, high-power computing and autonomous driving,” he added.

The technology is based on lithography, a process that uses light to create images of printed circuits on semiconductors, the bank said, adding that deep ultraviolet light has been used for many years to create these images. .

“We expect the first EUV machines to be delivered by the end of the year and the high NA EUVs to be delivered by 2025. We already have double-digit orders for these machines, and we are talking about €300 million. Recall that – 400 million euros per car, ”said Duval.

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