As Bitcoin’s highly anticipated halving event draws near, investors are preparing for potential market-wide rallies similar to the 2021 bull run. This cyclical event, which will take place in April, increases the scarcity of Bitcoin as the volume of cryptocurrency awarded to miners is halved. While many are focused on the implications for the cryptocurrency market, the semiconductor industry is also poised for significant growth during this crypto boom.
During bull runs, the demand for semiconductors surges due to the increased need for high computing power in cryptocurrency mining. Moreover, the semiconductor market is already experiencing a rally following the generative artificial intelligence (AI) boom in 2023. Now, with the resurgence of cryptocurrency mining as Bitcoin’s halving event approaches, we can expect sustained growth and the emergence of new players in the semiconductor market throughout the year.
For investors looking for budget semiconductor stocks with room to grow, here are three options worth considering:
1. Taiwan Semiconductor Manufacturing (TSM):
Boasting a 56% market share, TSM is the world’s largest semiconductor operator. Despite being overshadowed by Nvidia in 2023, TSM has ample opportunity to benefit from increased investor demand during the forthcoming crypto bull run. The company has been actively mitigating potential risks by establishing new locations worldwide, counteracting geopolitical tension between China and Taiwan. With a projected 25% revenue growth for 2024, TSM’s market leadership position positions it for success as more crypto miners seek semiconductor solutions.
2. Intel (INTC):
Intel, the computing giant, experienced a volatile start to 2024, with sales and profitability forecasts falling below expectations. However, the stock quickly rebounded on the back of Bank of America analysts suggesting that Intel Foundry Services (IFS) could become a leading alternative to TSM. With the custom chip market exceeding $30 billion in 2023 and the growing interest in generative AI and cryptocurrency mining, Intel’s expansion into the semiconductor industry is well-positioned for success.
3. Axcelis (ACLS):
Unlike other semiconductor stocks, Axcelis focuses primarily on manufacturing ion implantation equipment, which plays a crucial role in chip creation. In 2023, the company experienced exceptional demand in the silicon-carbide power device market, resulting in a significant order backlog. With a market cap of under $5 billion, Axcelis is a smaller company with significant growth potential. As the demand for ion implantation continues to rise amidst the crypto boom, Axcelis could achieve exceptional numbers.
As the crypto market undergoes significant changes with Bitcoin’s halving event, the semiconductor industry presents lucrative opportunities for investors. The increased need for computing power in cryptocurrency mining, coupled with the ongoing AI boom, sets the stage for sustained growth and the emergence of new players. By considering stocks like TSM, Intel, and Axcelis, investors can position themselves to benefit from this exciting market trend.
An FAQ section based on the main topics and information presented in the article:
1. What is Bitcoin’s halving event?
Bitcoin’s halving event is a cyclical event that occurs approximately every four years, where the number of new Bitcoins created and awarded to miners is halved. This event is built into the Bitcoin protocol and is designed to control inflation and increase scarcity.
2. How does the halving event affect the semiconductor industry?
During cryptocurrency bull runs, the demand for semiconductors increases due to the higher computing power required for cryptocurrency mining. As Bitcoin’s halving event approaches, the semiconductor market is expected to experience sustained growth as more miners seek semiconductor solutions.
3. What is Taiwan Semiconductor Manufacturing (TSM)?
Taiwan Semiconductor Manufacturing (TSM) is the world’s largest semiconductor operator, commanding a market share of 56%. It is a leading provider of semiconductor manufacturing services and solutions and is well-positioned to benefit from increased investor demand during the forthcoming crypto bull run.
4. What is Intel (INTC)?
Intel is a computing giant that is expanding into the semiconductor industry. Despite experiencing a volatile start in 2024, Intel’s Intel Foundry Services (IFS) has the potential to become a leading alternative to TSM. With the growing interest in generative AI and cryptocurrency mining, Intel is well-positioned for success in the semiconductor market.
5. What is Axcelis (ACLS)?
Axcelis is a semiconductor company that primarily focuses on manufacturing ion implantation equipment, which plays a crucial role in chip creation. With a market cap of under $5 billion, Axcelis has significant growth potential, especially as the demand for ion implantation rises during the crypto boom.
Definitions for key terms or jargon used within the article:
– Cryptocurrency mining: The process of validating and adding new transactions to a blockchain network, such as Bitcoin, by solving complex mathematical puzzles using high computing power.
– Semiconductor: A material that has electrical conductivity between that of a conductor and an insulator. In the context of this article, it refers to the electronic components used in devices like computers and smartphones.
– Bull run: A period of time during which prices in a market, such as the cryptocurrency market, rise significantly and investor sentiment is optimistic.
– Geopolitical tension: Conflicts or disputes between different countries or regions that can impact trade and international relations.
– Market cap: Short for market capitalization, it is the total value of a company’s outstanding shares of stock, calculated by multiplying the share price by the number of shares.
Suggested related links:
– Taiwan Semiconductor Manufacturing (TSM)
– Intel
– Axcelis
The source of the article is from the blog queerfeed.com.br