After the sharp rise, which US chip stocks are worth investing in now?
After the sharp rise, which US chip stocks are worth investing in now? Chip manufacturers and design companies such as NVIDIA, Taiwan Semiconductor, and Broadcom have seen impressive gains in their stock prices over the past few months, mainly due to the increased demand for their products sparked by the artificial intelligence revolution. NVIDIA's stock price has soared by 161%, while Taiwan Semiconductor and Broadcom's stock prices have risen by 80% and 52% respectively. AMD and Marvell Technology also saw significant growth in their stock prices. Analysts have provided their recommendations, with Jonathan Weber believing NVIDIA is the king, and Taiwan Semiconductor is also worth watching. Uttam Dey believes any chip company can benefit from expanding capital expenditures or a growing end-user market. Jere Wang states that data center capital expenditures will grow at a compound annual growth rate of 38% to reach $1 trillion
Chip manufacturers and design companies, such as NVIDIA (NVDA.US), Taiwan Semiconductor (TSM.US), and Broadcom (AVGO.US), have seen impressive gains in their stock prices over the past few months, mainly due to increased demand for their products sparked by the artificial intelligence revolution. Since the beginning of this year, NVIDIA's stock price has soared by 161%, while Taiwan Semiconductor and Broadcom's stock prices have risen by 80% and 52% respectively. AMD (AMD.US) and Marvell Technology (MRVL.US) have also experienced significant growth, with both companies' stocks rising by over 20% this year.
So, after a round of increases, what are the most worthwhile chip stocks to invest in now?
In response to this, SA analysts Jonathan Weber, Michael Del Monte, Uttam Dey, and Jere Wang have provided their recommendations.
Jonathan Weber said, "In terms of pure exposure to artificial intelligence, NVIDIA is the king. For a broader exposure, I am bullish on Taiwan Semiconductor because it benefits from the growth of various chip manufacturers, including NVIDIA, AMD, and others. However, investing in Taiwan Semiconductor carries some geopolitical risks that should not be overlooked."
Jonathan Weber pointed out, "In the GPU race, NVIDIA is undoubtedly the winner. AMD closely follows, while Intel (INTC.US) clearly goes to great lengths to avoid it. Micron Technology (MU.US) still has significant upside potential. Broadcom plays a crucial role in virtual networking and infrastructure. Qualcomm (QCOM.US) will be hindered by weak smartphone sales."
Uttam Dey believes that any chip company can continue to benefit from expanding capital expenditures or a growing end-user market. AMD, Qualcomm, and Impinj (PI.US) are seeing their end markets start to grow or accelerate again. On the other hand, Taiwan Semiconductor, NVIDIA, and Broadcom will continue to benefit from the growing data center capital expenditures, with data center capital expenditures expected to grow to $1 trillion by 2027 at a compound annual growth rate of 38%.
Furthermore, Jere Wang stated, "I believe the hype around artificial intelligence is sustainable. NVIDIA is the king of artificial intelligence, so having a core business makes sense; AMD should also expand its market share. Network companies like Broadcom and Marvell Technology are also key players; and let's not forget the foundry leader Taiwan Semiconductor."