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Shares of Nvidia (NVDA) and Advanced Micro Devices (AMD) have further room to run even as artificial intelligence becomes a “crowded market for semiconductor suppliers, writes Ian Ing with MKM Partners.

Ing, who has a Buy rating on both companies, raises his target on Nvidia to $106 from $87, and his target on AMD from $8 to $10.50.

More and more players are trying to get leverage in serving compute chips for machine learning and such, he notes, but Nvidia still has the momentum:

Thematic attention (and competition) is heating up as large suppliers are crowding into artificial intelligence as an investment theme with non-GPU solutions [Intel Corp. (INTC, Buy, $35.02, $44 PT), Qualcomm (Not Rated), and Xilinx, Inc. (XLNX, Neutral, $53.24, $53 FV)]. Advantages in a crowded A.I. field. Other suppliers may be able to come up with better performance-for-power in certain use cases. However, NVDA GPUs still have user stickiness with developer incumbency and easy-to-use tools (including the CUDA language) that will be difficult to overcome. This applies largely to “training” of neural networks, plus also “inferencing” as networks are deployed.

AMD should see some positive proof for its “Zen” platform in servers and workstations in coming months:

Investors are looking for industry validation on the Zen workstation and server opportunity. We think the achievable milestones in the coming months will be: (1) seeing major OEM customers announcing Zen-based product, (2) third party performance benchmarking reporting that Zen is competitive, and (3) understanding which D-C workloads Zen may be advantaged in and which INTC has overlooked/underserved. We think plain vanilla long-onlys are doing work on the name now but are awaiting greater signs of industry validation.

Nvidia stock is up 28 cents at $93.26. AMD shares are down 19 cents, or 2%, at $8.75.