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Fortune
Fortune
Rakesh Kumar

The chip industry can't keep up with the A.I. revolution

(Credit: VCG—VCG via Getty Images)

Everyone is talking about chips again, thanks to A.I and a rosy forecast from Nvidia. The news drove investors to flock to A.I.-related stocks to the tune of $300 billion in added value last month.

But all this optimism shouldn't distract us from one of the chip industry's key problems: Chips have stopped providing real jumps in computing power, right as we see an explosion of power-hungry applications like generative A.I.

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