Wedbush: The AI industry is at a critical turning point, beginning to rely on inference applications to drive revenue.

Wedbush research director Matthew Bryson pointed out that the trend in the entire field of artificial intelligence is shifting towards revenue growth through the application of reasoning. He said, "In the past three to four months, we have gradually seen a significant improvement in reasoning capabilities." This improvement in reasoning capabilities - applications that bring actual revenue to cloud service providers and model builders - is a crucial development for the industry. Bryson also holds a cautiously optimistic view on the growth prospects of AMD. Although AMD has consistently met performance expectations in the past, execution time remains a key concern in the entire artificial intelligence industry. Bryson said, "My only concern is that artificial intelligence is indeed difficult to master." The strategy expert cited examples such as AMD's MI250 graphics card, whose capacity ramp-up speed is slower than expected; and NVIDIA Corporation's Blackwell GPU, whose performance transition is not as smooth as expected. When discussing concerns about debt financing in artificial intelligence infrastructure investments, Bryson emphasized that debt only becomes a problem when companies cannot generate enough revenue and profit. He further pointed out that significant changes have occurred in the artificial intelligence field in recent months. He added, "It feels like we are now witnessing the commercialization process of artificial intelligence, which was a concern before. If you had asked me 12 months ago where the revenue would come from, all we saw was model building, and now it seems there is no revenue. What we see now are applications." Regarding the competition between AMD and NVIDIA Corporation, the analyst stated that AMD has the greatest potential to become the "fair second supplier" in the artificial intelligence chip market. With AMD's P/E ratio at around 50 times future earnings, compared to NVIDIA Corporation's P/E ratio of 33 times, Bryson concluded that if AMD can achieve its set 35% growth target and double-digit market share target, it will grow at a very fast pace.