Source: Bloomberg
Author: Carmen Reinicke
Although it may lack a single business attractiveness such as Nvida, hardware companies providing infrastructure for artificial intelligence computing are becoming the next transaction hotspot.
Although companies such as Micron Technology, Super Micro Computer and Dell Technology have returned by companies such as business verification, investors' expectations are heating up before the next financial report.Nearly half of the stock of the Philadelphia Semiconductor Index has risen at least 10%this year, pushing the market sales rate of the index to the highest level within at least 20 years.
The semiconductor index rose 1.1%on Wednesday.
Silvant Capital Management LLC chief investor Michael Sansoterra said the key is to recognize who is truly relying on artificial intelligence.
This upsurge highlights a trend that is brewing in the field of artificial intelligence. Investors are looking for stocks that may replicate Nvida's amazing rewards.In the processor market that provides power for artificial intelligence workloads, Nvidia still shows its own.
But this also involves many other components, including storage chips, servers and network components.Not to mention the device for making the chip itself.
"Competition is getting more and more intense," Brian Mulberry, a client investment group manager of Zacks Investment Management Inc., said, "To contact the enthusiasm and energy in the industry, there are other ways."
Micron's stock price rose about 30%last month, an increase of 16%of Nivine Dada.This storage chip manufacturer has been rising since the announcement of its financial report.
Dell's stock price jumped to a record high in early March. Previously, the demand for information technology and equipment used by the company to promote its sales and profits exceeded Wall Street expectations.
Following the S & P 500 index, server manufacturer Super Micro Computer rose 18%this month.The company will release financial reports on May 2.To maintain the rise, the company needs to reach market expectations of more than 200%of the quarterly revenue growth.
Although the rise has spread, some chip manufacturers such as Broadcom and AMD trying to catch up with Nvidia are facing additional pressure because they continue to lag behind the industry's leader.Following the expected performance, Broadcom's stock price plummeted earlier in March.AMD also gave a weak quarterly revenue guidance in January.Recently, it has been reported that China will restrict its chip use and drag down the stock price.
In view of the high expectations of NVIDA, for some long expectations, it may be time to identify the next big winner in the wave of artificial intelligence.
"We have full reasons to continue to believe that Nvidia will rise, but its return rate will not reach 100%later," Mulberry said. "Looking forward to the next three years, they may actually get better investment returns."
