Nvidia , a dominant player in the artificial intelligence computing market, may face increasing competition from custom chip designers in the near future, according to Morgan Stanley. "We therefore expect to see increasingly energy-efficient and low-cost AI custom chip designs ahead, matching or even outpacing the growth of NVIDIA's and AMD's general purpose GPUs." Morgan Stanley is "overweight" on the five stocks, and increased their price targets in the June 11 note. As one of the few pure-play leading-edge design service houses, we believe Alchip (along with GUC) is a key enabler of future custom A.I. Global Unichip The chip designer has been awarded a contract from Microsoft to work on its new 5nm custom AI chip, which could be deployed across the U.S. company's cloud computing products.

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Persons: Morgan Stanley, ChatGPT, Charlie Chan, Yuan, TSMC, Alchip Technologies Morgan Stanley Organizations: Nvidia, Intel, AMD, Taiwan Semiconductor Manufacturing Company, Alchip Technologies, Global, Yuan Electronics, ASM, Microsoft, Hong, ASM Pacific Locations: Taiwan, Hong Kong, China