Intel may be a contrarian bet on AI winners. Though risky, it relies more on good execution. The stock may rise more than others if it succeeds in the next two years.
No matter the accelerator wars winner, Micron is a good AI investment. Anders Bylund (Micron Technology): Every chip designer worth their sodium silicate is making powerful AI accelerator chips. If you can't top Nvidia's H100 and Blackwell chips' sheer performance, offer a power-efficient, cheaper, etc. processor. AI systems and solutions are in demand enough to establish many specialized markets.
Micron Technology approaches AI differently. Micron, a renowned memory hardware manufacturer, benefits from AI-driven high-performance computing. Most high-end number-crunching machines use massive arrays of SSDs made of NAND memory chips and lots of rapid DRAM memory. Micron goes further than the memory industry, which is rising.
Samsung and SK Hynix can't match the power efficiency of company's latest HBM products. Micron should be the best choice for supercomputers that train AI engines using Nvidia and rival accelerators and need a lot of high-speed DRAM memory.
Blackwell AI accelerators from Nvidia come with up to 192GB of Micron HBM per module. Micron literally rides Nvidia's coattails. Micron investors have recognized these growth catalysts, and the stock is barely below all-time highs. Micron has high valuation ratios. This stock isn't right for bargain hunters.
If you believe the memory market is shifting fundamentally, positioning Micron in a golden age of technology leadership amid a game-changing AI surge, the tale is different. Thus, Micron's high valuation may represent "the new normal" with room for growth in the coming years.
Big tech AI chips revolve around this top chipmaker. Nicholas Rossolillo (Broadcom): In a busy week for AI and semiconductors, Alphabet announced a new Arm Holdings processor. Google also revealed how its latest TPUs train AI. Meta Platforms introduced their latest bespoke AI chip for data center processing. Intel launched its Gaudi 3 AI chip to join the party. Each of the "Magnificent Seven" IT companies has hinted at a project to compete with Nvidia.
Actually, these companies are seeking to save money, not compete with Nvidia. Most big tech chip designs aren't their own, but few investors recognize this. Since they have ample financial resources, they can use the semiconductor sector to design these AI systems. Broadcom is the largest custom AI processor design business, supporting Google with its custom TPUs, Meta, and an unnamed third tech giant on another AI project.
AI is predicted to account for 35% of Broadcom's 2024 chip sales. Broadcom's ability to integrate and profit from its mega-acquisition of VMware is the market's focus today. AI chips could change the game long-term. Broadcom stock may be a good long-term value at 28 times current fiscal year anticipated earnings per share.
stay turned for development