AI Infrastructure Drives Semiconductor Industry Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 hours ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Surging Market Demand: Five companies are projected to spend a staggering $700 billion on AI data centers this year, driving rapid growth in the semiconductor industry, particularly benefiting firms like Nvidia and Broadcom.
- Nvidia's Market Dominance: With approximately 90% market share in graphics processing units (GPUs), Nvidia's CUDA software platform provides robust support for AI training, which is expected to further boost its revenue growth.
- Broadcom's Custom Chip Advantage: Broadcom is assisting customers in developing custom AI application-specific integrated circuits (ASICs), which, while less flexible than GPUs, offer advantages in energy efficiency and cost-effectiveness, likely leading to rapid market share growth.
- Micron's DRAM Shortage Opportunity: As demand for high-bandwidth memory (HBM) surges, Micron, as one of the major DRAM manufacturers, is set to benefit from an ongoing supercycle, significantly enhancing its revenue and gross margins.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 182.810
Low
200.00
Averages
264.97
High
352.00
Current: 182.810
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Energy Stock Upgrade: Melius upgraded Chevron from hold to buy, raising its price target from $162 to $205, as analysts believe the global energy company is well-positioned for growth, particularly due to developments in Venezuela.
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