Industrial AI investment is picking up for infrastructure and component vendors indicating that use cases are in the pipeline for manufacturing, automotive and other asset-heavy industries. The quarters ahead will likely see investment move up the technology stack.
Although it's early, the breadcrumbs pointing to industrial AI demand are starting to pile up. Consider:
- Micron Technology, which reported better-than-expected third quarter results and outlook, said it is expanding its memory manufacturing to support aerospace, defense and industrial markets. Micron CEO Sanjay Mehrotra said: "In industrial, we are seeing a resumption in our growth as customers increase their investments for the adoption of AI, including in key areas like factory automation."
- Nvidia CEO Jensen Huang said on the company's most recent earnings call and at the company's Paris GTC event that investment in digital twins, industrial AI and robotics is ramping.
- Hitachi Digital Services highlighted the intersection of IT and operational technology as a key growth area. Manufacturing is looking to AI and automation at factories.
- Amazon and Walmart are increasingly highlighting the use of AI and automation in the supply chain and distribution centers.
These industrial AI use cases are likely to proliferate in the quarters ahead as physical AI models roll out, enterprises need to automate to cut costs amid economic volatility and manufacturing moves away from China to some degree.
