Missed the Nvidia rally? These 10 companies are buying its chips — and their stocks are rallying
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 07 2024
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Source: CNBC
- Nvidia Stock Surge: Nvidia's stock has risen by 280% in the past year due to increased sales of chips for AI applications.
- Investor Interest in AI Companies: Investors are also investing in companies that purchase Nvidia's chips, expecting AI to enhance productivity and profits.
- Correlation with Nvidia: Companies like Super Micro, Tokyo Electron Device, Meta Platforms, Tata Motors, and Mitsui have seen significant gains as their stock prices correlate closely with Nvidia's.
- Key Customers: Microsoft is Nvidia's top customer for AI chips, while TSMC is its primary chip manufacturer. Meta and Super Micro are also major customers.
- Tokyo Electron Device and Mitsui: Tokyo Electron Device distributes Nvidia's chips in Japan, while Mitsui is developing a supercomputer powered by Nvidia GPUs for generative AI in pharmaceuticals.
Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
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.
