Technology hardware manufacturers Wistron, Wiwynn and Quanta Computer reported record annual returns yesterday (24 July), reports Bloomberg.
All three manufacturers supply cloud computing solutions and hardware to major tech companies such as Apple, Amazon and Microsoft.
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Demand for AI has been credited as the cause of these record returns for the manufacturers.
Both Apple and Microsoft have recently been attributed to major AI projects, such as Microsoft’s Copilot subscription service for its Office bundle and quiet speculation over Apple’s own (large language model) LLM that is currently in development.
A 2023 GlobalData report into the sweeping impact of generative AI identified that increasing operational efficiency would be paramount as AI increasingly seeps into consumer electronics.
As AI becomes increasingly powerful, the need for increasingly powerful hardware will also become critical.
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By GlobalDataHowever, these highs come amongst an ongoing semiconductor chip shortage which has been increasingly exacerbated by the US-China trade war and a 2021 semiconductor squeeze that affected production in Taiwan.
With semiconductors becoming an increasingly fraught subject of legislation, after Japan and the US are increasingly controlling the export of chips, hardware instead may appear the safer investment for AI.
Despite this, scepticism over the longevity of AI driving investment is increasing and predictions of AI becoming another bubble are already forming.
