As the AI craze continues to shape and revolutionize various industries, chip stocks have experienced an impressive rally in recent years. One company that stands out is Nvidia, which saw its share price surge by over 239% in 2023, thanks to its role in designing high-end chips for training large language models (LLMs). However, there are several other chip stocks that investors should keep an eye on in 2024.
1. Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) is set to enter the AI chip race this year, and its potential impact should not be underestimated. Known for its ability to produce quality products and undercut rivals, AMD announced the MI300x GPU chipset last year, which directly competes with Nvidia’s A100 and H100 chips used for training LLMs. The company expects to generate $2 billion in revenue from AI chips in 2024. While AMD’s valuation may seem stretched, its future in AI chip-making could drive shares even higher, making it a stock worth watching.
2. Taiwan Semiconductor Manufacturing (TSM)
As the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing (TSM) is a crucial player in the chip industry. The company produces chips for major clients like Apple, Qualcomm, and Nvidia and specializes in advanced manufacturing processes such as 5-nanometer and 3-nanometer technologies. This enables the production of smaller, faster, and more power-efficient chips. TSM’s recent earnings report indicated an end to the chip slump, and its potential involvement in building manufacturing facilities in the United States positions it favorably for growth in 2024. Moreover, TSM’s shares trade at an attractive multiple compared to its peers, making it an appealing investment.
3. Intel (INTC)
Although Intel had a challenging year in 2023, the company’s stock price nearly doubled by year-end, highlighting its resilience. Intel remains dominant in the PC space, commanding 68.4% of the x86 CPU market share. The company is determined to maintain its leadership by launching new chip manufacturing processes, including the 7nm Meteor Lake processors and the Arrow Lake and Lunar Lake series. With the introduction of the CHIPS Act to support U.S. manufacturing, Intel has an opportunity to reclaim its position as the top CPU manufacturer in America. Investors should pay attention to Intel’s progress in 2024.
In conclusion, chip stocks continue to be an exciting sector for investors, particularly those related to the AI industry. As Advanced Micro Devices, Taiwan Semiconductor Manufacturing, and Intel make strides in chip technology, their stocks present compelling opportunities for growth and should be closely monitored throughout 2024.
The source of the article is from the blog combopop.com.br