We are in the midst of an AI boom, and it seems like some semiconductor stocks are proving to be the major winners in this race. Let’s dive right into it, shall we?
Introducing the ‘Four Horsemen of AI’
According to CFRA Research analyst Angelo Zino, there are four semiconductor stocks emerging as the leaders in the AI race. And no, before your imagination runs wild, he’s not referring to the apocalyptic Four Horsemen, but rather the legendary Four Horsemen of Notre Dame in college football. These ‘four horsemen’ include Advanced Micro Devices (AMD), Broadcom (AVGO), Marvell Technology (MRVL), and Nvidia (NVDA).
Touchdown for Semiconductor Stocks
Zino sees a “permanent shift in data center infrastructure spend toward accelerators and networking upgrades,” which he believes will benefit these four tech giants. He’s put his money where his mouth is, reiterating his buy ratings on these semiconductor stocks.
Nvidia: The AI Market Leader
Among these four, Nvidia is taking a leap ahead in the AI market. With the greatest revenue representation tied to AI, Nvidia is followed by AMD, Broadcom, and Marvell. Nvidia’s expertise in GPUs, software capabilities, recent entry into CPUs, and networking prowess make it a standout performer, poised to lead the AI market in the coming years.
Generative AI: The New Game Changer
Generative AI, which can create content from simple descriptive phrases, has initiated a massive upgrade cycle for data center hardware. This AI technology can produce written articles, images, videos, music, and even write computer programming code.
So, as we watch the AI race unfold, keep your eyes on these four horsemen of semiconductors. They just might be the ones crossing the finish line, basking in the glory of technological victory.
Source: www.investors.com
