Nvidia, AMD shares jump on considerable AI chip demand

On January 16th, after the Federal Reserve officials indicated to consider interest rate cuts with a cautious approach, the overall stock market faced pressure. However, the shares of two major semiconductor giants continued the recent strong upward trend of chip stocks. NVIDIA's stock price hit a new high, while AMD's shares surged over 8% during the day. The market also seems to have higher expectations for AMD. Let's take a look at today's News Decoding.

Chips can be categorized into eight types, including logic chips, such as the Central Processing Unit (CPU) and Graphics Processing Unit (GPU), memory chips for data storage in computers and phones, and analog chips , such as 5G chips commonly used in telecommunications. Among them, logic chips create the largest revenue stream, accounting for over 30% of the industry's total sales in 2022.