Antonio Bordunovi
Chip manufacturers and designers such as NVIDIA (NASDAQ: NVDA), TSMC (NYSE:TSM) and Broadcom (NASDAQ:AVGO) have seen their stock rise impressively over the past few months, largely thanks to the artificial intelligence revolution spurring increased demand for their products.
since Earlier this year, NVIDIA (NVDA) shares soared 161%, while TSM (TSM) has risen 80%, Broadcom (AVGO)52%. Advanced Micro Devices Corporation (NASDAQ:AMD) and Marvell (NASDAQ: MRVL) has also posted notable gains, with both stocks up more than 20% year to date.
This leads us to today’s SA Ask Investment Question: What are the chip stocks worth investing in right now?
We asked JR Research’s SA analysts Jonathan Weber, Michael Del Monte, Uttam Dey and Jere Wang about their picks.
Jonathan Webb: For pure AI exposure, NVIDIA (NVDA) is the king. For broader exposure, I like Taiwan Semiconductor Manufacturing Company (TSM) because it benefits from the growth of various chip manufacturers, including NVIDIA (NVDA), AMD (AMD), and others. However, investing in TSM (TSM) comes with some geopolitical risks that shouldn’t be ignored.
Michael Delmonte: NVIDIA (NVDA) is the clear winner in the GPU race. AMD (AMD) follows Intel (NASDAQ: INTC) as explicitly avoided at all costs. Micron Technology (NASDAQ:MU) still has huge upside potential. Broadcom (AVGO) plays a vital role in virtual networking and infrastructure. Qualcomm(NASDAQ: Qualcomm) will lag behind flat smartphone sales.
Uttam Dey: Any chip company that can continue to benefit from expanded capex or a growing end-user market. AMD (AMD), Qualcomm (QCOM) and Impinj (NASDAQ:PI) are seeing their end markets begin to grow or re-accelerate. On the other hand, TSM (TSM), NVIDIA (NVDA), and Broadcom (AVGO) will continue to benefit from growing data center capex, which is expected to reach $1 trillion by 2027 with a CAGR of 38 %.
Wang Jier: I believe the hype around artificial intelligence is sustainable. NVIDIA (NVDA) is the king of artificial intelligence, so having core exposure makes sense. AMD (AMD) should also expand its market share. Internet companies such as Broadcom (AVGO) and Marvell (MRVL) are also key players. And don’t forget foundry leader Taiwan Semiconductor Manufacturing Co. (TSM).
