Key Stocks in the Global AI Supply Chain: Spotlight on Nvidia and Partners

Analysts Notebook wrote a column · Mar 28 21:53

Large U.S. tech firms like $NVIDIA(NVDA.US)$, $Microsoft(MSFT.US)$, and $Alphabet-A(GOOGL.US)$ have gained from the AI market hype over the past year. However, more companies in the global AI supply chain are also poised to benefit.

Check out these companies in the AI semiconductor value chain:

Key Stocks in the Global AI Supply Chain: Spotlight on Nvidia and Partners

According to a BofA note, there has been a surge in the AI market with diverse AI solutions emerging since mid-2023. $Taiwan Semiconductor(TSM.US)$ plays a critical role in chip production, with chip designs coming from various global sources.

The scarcity of AI/computing suppliers helps higher value-added and bargaining power, esp. for costly AI products," BofA analysts wrote.

A new research from Omdia has revealed that the global semiconductor supply chain is forecasted to reach approximately $600 billion by 2024. Omdia's Claire Wen notes that NVIDIA leads the AI accelerator market for cloud and data centers, while giants such as Google, Amazon, and Microsoft are creating custom AI chips for better performance and efficiency. Additionally, edge AI is growing, particularly in AI PCs and smartphones, with $Qualcomm(QCOM.US)$ advancing in the AI PC market using its smartphone AI expertise. Omdia forecasts that the pureplay foundry industry will grow by approximately 16% in 2024, due to gradual demand recovery and inventory completion from more and more applications.