In a semiconductor super cycle, here are 3 semiconductor stocks to follow

Semiconductor stocks benefit from AI

The semiconductor industry designs, development, manufacturing, and distribution of semiconductors. The products the semiconductor stocks produce are fundamental components of electronic devices. The semiconductor sector includes a range of companies, established and emerging. The industry is dynamic and in the future new companies will evolve.
 
semiconductor stocks
Semiconductors are materials that, under specific conditions, have the ability to conduct electricity. The material they are composed of has electrical conductivities similar to a metal and an insulator like plastic. They form the backbone of modern technology. They power gadgets such as smartphones, computers, televisions, automobiles, and many more.
 
semiconductor stocks
The semiconductor industry is famous for its quick rate of technical growth and invention. Key firms in the sector engage in R&D programs. The aim is to manufacture smaller, quicker, and more efficient processors. These companies benefit from the rising demand for semiconductors. The demand is being pushed by developing technologies such as artificial intelligence. Plus, the Internet of Things, 5G networks, and self-driving cars.
 
For more information on the Semiconductor Industry, click HERE.

Prominent semiconductor stocks:

      • Advanced Micro Devices Inc. (AMD)
      • Intel Corporation (INTC)
      • NVIDIA Corporation (NVDA)
      • Qualcomm Incorporated (QCOM)
      • Micron Technology Inc. (MU)
      • Broadcom Inc. (AVGO)
      • Texas Instruments Incorporated (TXN)
      • Applied Materials, Inc. (AMAT)
      • ASML Holding N.V. (ASML)
      • Lam Research Corporation (LRCX)
      • Analog Devices, Inc. (ADI)
      • KLA Corporation (KLAC)
      • Xilinx, Inc. (XLNX)
      • Skyworks Solutions, Inc. (SWKS)
      • Marvell Technology Group Ltd. (MRVL)
semiconductor stocks
semiconductor stocks

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the 6 phases of an AI service

Semiconductors stocks are set to benefit from the growth in Artificial Intelligence (AI). There are six phases involved in providing an AI service. Semiconductors play a crucial role in each of these. Here’s a quick overview of how and why semiconductors are used in each phase.

Data Collection and Preparation:

Data gathering devices employ semiconductors. Cameras, microphones, and other visual and audio sensors use semiconductors. AI systems can interpret electrical signals from these sensors. Semiconductors efficiently convert real-world data into digital signals for data processing and analysis.

Machine Learning Algorithms and Models:

This phase depends on semiconductors. Matrix calculations and optimization techniques demand high-performance computers for AI activities. Semiconductors, notably GPUs and TPUs, are optimized for computational tasks. They expedite complicated mathematical calculations, speeding machine learning algorithm training and inference.

Model Training and Evaluation:

AI model training and evaluation requires semiconductors. Semiconductors power input data-based model parameter optimization during model training. CPUs and GPUs execute matrix multiplications and numerical computations. This is true for deep neural networks and other sophisticated models. Semiconductors easily process massive data sets to evaluate trained models’ accuracy and performance.

semiconductor stocks

Infrastructure and Computing Resources:

AI services depend on semiconductors. They power huge dataset storage, processing, and analysis servers. Also, data centers, and cloud computing platforms. Semiconductors offer high-speed data transfer, fast memory access, and parallel computing. AI infrastructure can handle training and inference activities.

Integration and Deployment:

AI service integration requires semiconductors. They scale AI algorithms and real-time data processing. Servers, edge devices, and embedded systems run AI models. They then interact or interface with users or other systems via semiconductors. Their computational power lets the AI service quickly process data and give results.

Semiconductors and AI

Semiconductors are essential to every AI service. They enable the following tasks:
      • Data collection,
      • Machine learning computation,
      • Model training and evaluation,
      • Infrastructure computing resources,
      • Integration and deployment,
      • Ongoing monitoring and improvement.
 
Semiconductors power AI algorithms and models.
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NVIDIA (NVDA)

Nvidia (NVDA)

Nvidia is a graphics processor manufacturer, and chip design. Both are key specialties for successful semiconductor stocks. They make GPUs and SoCs. Gaming, AI, data centers, and autonomous vehicles employ NVIDIA chips. NVDA develops powerful CPUs with excellent graphics and parallel processing.
 
Data centers, gaming PCs, and vehicle infotainment systems use the NVDA’s processors. NVDA has shifted its focus from gaming to artificial intelligence and autonomous driving. These lines of business need GPUs with strong performance.
An AI supercomputing company
NVDA has really evolved into an AI supercomputing company. At this point NVDA has a high degree of freedom over ‌AI infrastructure requirements. NVDA’s management has been sharp and made business-savvy investments. The focus has been on techniques that enable NDVA to command the AI market. Thus, NVDA’s strategy and software-focused approach is a market leader.
 
Unmatched, at least for the moment, this will not last. NVDA will face competition from AMD, Google, and geopolitical influences. Due to the US’s latest chip export control, NVDA’s state-of-the-art GPUs like the A100 and H100 cannot be sold to China.
 
A strong ecosystem
NVDA has established a strong ecosystem. This covers processors, equipment plus a range of software and development systems. This has enabled NDVA to adapt by adding new features. Other AI chips may be faster and cheaper. In general, they do not have the increase in the existing programming experience.
 
After the recent announcements NVDA’s stock ‌is currently trading at a PE ratio of at least 70X. This is set to be reviewed by the equity analysts, the revenue figure for NVDA is being upgraded. The stock has a price-to-book (PB) ratio of 34X, a price-to-sale (PS) ratio of 34X and a price-to-CF of 98X. 

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ADVANCED MICRO DEVICES (AMD)

Advanced Micro Devices (AMD)

AMD is a semiconductor stock. The groups specializes in chip design, primary microprocessors and graphics cards. They provide processors for both the consumer and enterprise industries. AMD’s chip designs are well-known for their high performance and low cost. AMD has gained a significant market share in recent years, and now is a serious rival in the industry.
 
AMD IS currently trading on a PE ratio of 49X. In the wake of the Nvidia announcement, AMD should benefit. Thus, the forecasted earnings are under review by ‌equity analysts and full year sales figures are being upgraded. The stock has a price-to-book (PB) ratio of 3.19X, a price-to-sale (PS) ratio of 8.21X.

INTEL CORPORATION (INTC)

INTEL CORPORATION (INTC)

Intel Corporation, one of the world’s largest semiconductor manufacturers. It has become a leading provider of microprocessors and chipsets. INTC is expanding into data-centric areas such as artificial intelligence and autonomous driving. Thus, a keen competitor to NVDA among semiconductor stocks.
 
Intel is a market leader in both the consumer and enterprise CPU industries. Groups include the Data Center Group, the Internet of Things Group, and Mobileye. Also, the Non-Volatile Memory Solutions Group, and the Programmable Solutions Group. Thus as a semiconductor stock INTC has diversified its operations.
Chip Design:
Intel is a leading chip designer. The chip designers create sophisticated microprocessor designs. They are then used in desktops, laptops, servers, and data centers. Intel designs high-performance processors with advanced features using their chip design knowledge.
Chip Manufacture:
The group manufactures semiconductor chips in fabs. They invest substantially in R&D to improve fabrication technology. Thus INTC is able to make devices with smaller transistors and higher power efficiency. Intel’s manufacturing capabilities enable chip design commercialization.
Chip Sale:
Over its history, INTC has invested in R&D. INTC has improved its fabrication technology. They now make devices with smaller transistors with higher power efficiency. Intel’s manufacturing capabilities enable chip design commercialization.
 
Looking at INTC’s current valuation it is currently trading on a PE ratio of 63.20X. The stock has a price-to-book (PB) ratio of 1.2X, a price-to-sale (PS) ratio of 1.8

The charts used in this Blog Post are from Barchart. Barchart is a financial data and technology company that provides financial market data, news, analysis, and trading solutions. The website is designed for individual traders and investors, as well as institutional clients, including banks, brokers, and hedge funds.

QUESTIONS

Question: 

How do semiconductors contribute to the development of AI services?

Answer:

Semiconductors contribute to the development of AI services in a variety of ways. They are used for data collection and preparation, machine learning algorithms and models, model training and evaluation, infrastructure and computing resources, integration and deployment, and continuous monitoring and improvement. They power AI algorithms and models, facilitate real time data processing and analysis, and enable the scaling of AI algorithms and real time data processing.

Question: 

How can semiconductors perform and what are they used for?

Answer:

Semiconductors are materials which, under specific conditions, can conduct electricity. The materials they are composed of have electrical conductivities similar to metals and insulators like plastic. They form the backbone of modern technology, powering gadgets such as smartphones, computers, televisions, automobiles, and more.

Question: 

What are the six phases involved in providing an AI service?

Answer:

The six phases involved in providing an AI service are data collection and preparation, machine learning algorithms and models, model training and evaluation, infrastructure and computing resources, integration and deployment, and continuous monitoring and improvement.

Question: 

How does the semiconductor industry benefit from the growth in Artificial Intelligence (AI)?

Answer:

The semiconductor industry benefits from the growth in Artificial Intelligence (AI) as the demand for semiconductors is driven by developing technologies. These are technologies ‌such as AI, the Internet of Things, 5G networks, and self-driving cars. Key firms in the sector engage in R&D programs to manufacture smaller, quicker, and more efficient processors.

Question: 

What is the semiconductor industry?

Answer:

The semiconductor industry is involved in the design, development, manufacturing, and distribution of semiconductors. These are electronic components fundamental to the operation of a variety of electronic devices. It is a dynamic sector which includes a range of established and emerging companies.

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In a semiconductor super cycle, here are 3 semiconductor stocks to follow

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Warren William

Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: wwBLOG@smartest-data.blog or Telegram +393339034488

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