Throughout 2023, the demand for cutting-edge GPUs and CPUs soared, fueled by companies seeking to power their new AI applications, setting a vibrant stage for the surge in AI chip stocks.
Unprecedented Growth in AI Chip Stocks
Consider Nvidia (NVDA), whose stock price more than tripled last year, exemplifying the monumental rise of AI chip stocks. Undoubtedly, the chip boom in 2023 has paved the way for a potentially even bigger scale in 2024.
The recent quarterly earnings reports from the world’s largest chipmaker, Taiwan Semiconductor (TSM), have surpassed all expectations. Their stellar financial performance was coupled with management’s optimistic outlook for 2024, citing an unprecedented demand for AI chips.
This announcement resulted in a significant market response, with TSMC’s stock surging by about 10%. This surge was echoed across the sector, with stocks like Nvidia, Intel (INTC), Advanced Micro Devices (AMD), Qualcomm (QCOM), Broadcom (AVGO), and Arm (ARM) witnessing substantial increases. The iShares Semiconductor ETF (SOXX) also soared by almost 4%, underscoring the more extensive meteoric rise in AI chip stocks.
Looking Ahead in 2024
Indications suggest that the uptrend in AI chip stocks is not a fleeting phenomenon. On the contrary, projections imply that the momentum will prevail throughout 2024.
Technical assessment suggests that chip stocks could potentially experience an average increase of about 30% this year. Notably, this implies that certain chip stocks have the potential to exceed this substantial growth.
With the focus shifting from Nvidia to the next batch of potential AI chip stock winners, the landscape appears inviting for investors seeking new growth prospects in this dynamic sector.
Exploring the Future of AI Chip Stocks
The promising future of AI chip stocks beckons investors to explore the next wave of opportunities. As the 2024 landscape unfolds, the potential for substantial gains in this sector amplifies.
We invite you to delve further into what’s on our radar as we navigate the terrain of AI chip stocks in 2024.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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