Latest news with #chipmarket
Yahoo
4 days ago
- Business
- Yahoo
Everyone's Watching Nvidia -- but This AI Supplier Is the Real Power Player
Key Points Nvidia has played a pioneering role in the proliferation of AI, but it wouldn't have been possible without this company. Nvidia, along with many other chip designers and consumer electronics companies, relies on the manufacturing expertise of this Taiwan-based giant. The wide range of industries that this Nvidia partner caters to makes it one of the best ways to play the global AI boom. 10 stocks we like better than Taiwan Semiconductor Manufacturing › Nvidia (NASDAQ: NVDA) is considered a pioneer in the artificial intelligence (AI) hardware market, and rightly so, as the chip designer's graphics processing units (GPUs) have allowed cloud computing companies and others to train AI models and run inference applications. The parallel computing power of Nvidia's GPUs makes them ideal for performing a large number of calculations simultaneously, which is precisely what's required for training AI models. Also, these chips are now gaining traction in AI inference as well, thanks to their ability to quickly make predictions and decisions using the trained model. Not surprisingly, Nvidia has established a solid foothold in the AI chip market. It towers above its competitors with an estimated market share of 80% in AI data center accelerators. However, Nvidia's dominance wouldn't have been possible without its foundry partner Taiwan Semiconductor Manufacturing (NYSE: TSM), which is the real kingpin of the AI chip market. Let's look at the reasons why TSMC is a bigger power player than Nvidia in AI chips. TSMC's dominant foundry position makes it the go-to manufacturer of AI chips TSMC operates semiconductor fabrication plants across the globe, which are used to manufacture chips based on designs provided by its customers. It is worth noting that TSMC doesn't design its own chips. It simply makes chips for fabless semiconductor companies that don't have production facilities of their own. Nvidia is one such company that utilizes TSMC's facilities for manufacturing its AI chips. Equity research and brokerage firm Bernstein estimates that Nvidia could account for over a fifth of TSMC's top line this year, up significantly from around 5% to 10% a couple of years ago. That's not surprising, as Nvidia has been aggressively looking to secure more of TSMC's chipmaking capacity. Taiwan-based business newspaper Economic Daily News pointed out earlier this year that Nvidia has reportedly secured more than 70% of TSMC's advanced chip packaging capacity for 2025 in a bid to meet the robust demand for its AI GPUs. However, Nvidia is not the only company that's in line to utilize TSMC's fabs. Apple (NASDAQ: AAPL) is another major customer, and its contribution toward TSMC's top line is expected to be identical to that of Nvidia's in 2025. The consumer electronics giant taps TSMC to manufacture the processors that go into popular devices such as iPhones and iPads, and it has reportedly pre-booked the foundry giant's 2-nanometer (nm) capacity to mass produce chips for its next-generation iPhones. It is worth noting that Apple had reportedly booked all of TSMC's 3nm supply in 2023 to make processors for the iPhone and other devices. And now that Apple is looking to bolster the on-device AI capabilities of its devices, it is expected to move to the 2nm node so that it can pack more computing power and increase energy efficiency. Apple, however, has company, as another smartphone chip designer -- Qualcomm -- is expected to produce chips based on TSMC's 2nm process node as well. On the other hand, Nvidia's peers in the AI accelerator market are also partnering with TSMC to manufacture advanced chips. Marvell Technology, for instance, is reportedly going to adopt TSMC's sub-3nm process nodes to manufacture the next generation of its custom AI processors, which are in tremendous demand from cloud computing giants to reduce costs. Meanwhile, AMD is getting its central processing units (CPUs) and GPUs that power both servers and personal computers (PCs) manufactured by TSMC as well. Clearly, TSMC is the power player in the AI chip market. Its plants manufacture chips that go into a wide variety of applications, ranging from smartphones to PCs to data centers, and all of these markets are on track to record secular growth because of AI. Importantly, TSMC is taking steps to ensure that it can meet the incredible demand from all of these markets. An aggressive expansion plan should help it satisfy the booming AI chip demand TSMC's 2025 capital expenditure forecast of $38 billion to $42 billion points toward a significant increase over its 2024 outlay of $30 billion. It is going to invest 70% of its 2025 capex on advanced process technologies that are used for making AI chips, which isn't surprising. Moreover, the company has aggressive long-term expansion plans as well. It has outlined an investment of $165 billion in the U.S. to build more plants, while it is also building factories in Taiwan and Europe. These expansionary moves should enable TSMC to capitalize on the AI chip market's impressive long-term growth. According to one estimate, the global AI chipset market could clock an annual growth rate of 31% through 2033, which means that TSMC has the ability to sustain its terrific growth for years to come. Not surprisingly, analysts are expecting a pick-up in TSMC's growth going forward. That's why it would be a good idea to buy this AI stock hand over fist right now, as it seems undervalued. TSMC's earnings are expected to jump by 34% this year, which is nearly five times the projected increase in the S&P 500 index's average earnings. With the stock trading at 28 times earnings, investors are getting a good deal on TSMC based on the potential upside it could deliver. Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now? Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Marvell Technology. The Motley Fool has a disclosure policy. Everyone's Watching Nvidia -- but This AI Supplier Is the Real Power Player was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
09-07-2025
- Business
- Globe and Mail
Chipmaker Nvidia becomes most valuable company in the world at $4 trillion
NEW YORK (AP) — Chipmaker Nvidia became the first public company to top $4 trillion in value on Wednesday after two-year investor frenzy. Nvidia shares rose 2.5%, or $3.97, in early trading Wednesday, topping $164 each. At the beginning of 2023, Nvidia shares were around $14 each. The poster child of the AI boom, Nvidia has grown into the most valuable company in the world, surpassing Microsoft, Apple, Amazon and Google parent Alphabet. The stock's movement carries more weight on the S&P 500 and other indexes than every company except Apple. Two years ago, Nvidia's market value was below $600 billion. In its most recent quarter, Nvidia overcame tariff-driven turbulence to deliver another quarter of robust growth amid feverish demand for its high-powered AI chips. Nvidia earned $18.8 billion, or 76 cents per share, in the period, a 26% increase from the same time last year. Revenue surged 69% from a year ago to $44.1 billion. If not for a $4.5 billion charge that Nvidia absorbed to account for the U.S. government's restrictions on its chip sales to China, Nvidia would have made 96 cents per share, far above the 73 cents per share envisioned by analysts. Nvidia reports its second-quarter results next month. Wall Street is expecting another quarter of record sales and profit for the Santa Clara, California, company. Nvidia and other companies benefiting from the AI boom have been a major reason the S&P 500 has climbed to record after record recently. Their explosion of profits has helped to propel the market despite worries about stubbornly high inflation and possible pain coming for the U.S. economy from tariffs and other policies of President Donald Trump.
Yahoo
09-07-2025
- Business
- Yahoo
AMD Stock Rebounds After Prime Day Jitters
AMD (AMD, Financials) rose 2.24% to close at $137.82 on Wednesday, recovering from Monday's 1.7% dip after the company slashed prices on its Ryzen chips ahead of Amazon's Prime Day. In Thursday's pre-market session, shares were up another 0.74% to $138.84. Warning! GuruFocus has detected 3 Warning Signs with AMD. The Ryzen 9 9950X is now selling for $434 a 33% cut from MSRP. The Ryzen 5 9600X dropped 41% to $165. While the discounts are a win for consumers and could boost market share, they raised concerns earlier in the week over AMD's pricing power and margin sustainability. The aggressive deals went live before Prime Day officially began, triggering some initial sell pressure. But investors appear to be reassessing the move more positively as a competitive play in the DIY and gaming segments. Year to date, AMD shares are up 11.66%, though they remain nearly 23% lower over the past 12 months a reminder of the sector's volatility. Analyst sentiment remains cautiously optimistic. The stock holds a Moderate Buy rating from 34 analysts, with an average price target of $133.62. Citi's Christopher Danely recently raised his target to $145, citing improved chip demand and better inventory positioning, though he kept a Neutral rating. Bottom line: The selloff may have been short-lived and investors are watching whether strong consumer uptake translates into sustainable upside. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Nvidia's market dominance leaves it with 'only one way to go'
Nvidia (NVDA) is dominating the artificial intelligence (AI) chip market, but its lead could shrink as rivals ramp up. Gil Luria, D.A. Davidson head of technology research, joins Market Domination to explain how players like Advanced Micro Devices (AMD), Broadcom (AVGO), and Huawei are positioned to chip away at Nvidia's market share. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. You know, Gil, I, I know some colleagues of yours on the street, big fans of AMD, and they say, you know what, Lisa Su and her team, they're gonna, they're gonna narrow that gap with Jensen Wong and his crew over at Nvidia. I am curious broadly, Gil, how do you see the competitive landscape evolving for Nvidia? Yeah, so that's the other part of it is that, uh, Nvidia has almost the entire market right now. The number 2, the distant number 2 is actually Google TPUs. uh, Broadcom, uh, which, which Broadcom supplies, so in that sense they're also in the mix, but AMD Intel, all those are are really minor players going forward. We expect the the the custom chips made by Broadcom Marvell and others to have a bigger share of the market. AMD to start growing from that very small base but very importantly tying to the conversation you started earlier, Huawei. The more restricted Nvidia is selling into China, the better glide path there is for Huawei to accelerate growth and take bigger and bigger pieces of the market. So again, Nvidia participating just well the shrinking share because they're starting with the owning the almost the entire market, there's only one way to go from there.
Yahoo
30-06-2025
- Business
- Yahoo
Nvidia's market dominance leaves it with 'only one way to go'
Nvidia (NVDA) is dominating the artificial intelligence (AI) chip market, but its lead could shrink as rivals ramp up. Gil Luria, D.A. Davidson head of technology research, joins Market Domination to explain how players like Advanced Micro Devices (AMD), Broadcom (AVGO), and Huawei are positioned to chip away at Nvidia's market share. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. You know Gil, I I know some colleagues of yours on the street. Big fans of AMD and they say you know what? Lisa Su and her team they're gonna they're gonna narrow that gap with Jensen Wong and his crew over invidia. I am curious broadly, Gil, how do you see the competitive landscape evolving for invidia? Yeah, so that's the other part of it is that Nvidia has almost the entire market right now. The number two, the distant number two is actually Google TPUs. Uh Broadcom uh which which broadcom supplies. So in that sense, they're also in the mix. But AMD, Intel, all those are are really minor players. Going forward, we expect the the the custom chips made by Broadcom Marvel and others to have a bigger share of the market. AMD to start growing from that very small base, but very importantly, tying to the conversation you started earlier, Huawei. The more restricted invidia selling into China, the better glide path there is for Huawei to accelerate growth and take bigger and bigger pieces of the market. So again, in video participating just with the shrinking share because they're starting with owning the almost the entire market, there's only one way to go from there. Sign in to access your portfolio
