It’s hard to imagine that the chip and technology sector could repeat the stunning year it had in 2023, but financial and technology analyst groups both are nearly universal in agreement that 2024 will be just that. Fueled by the need for more computing horsepower than ever before, including the rise of AI, chip companies will likely see 2024 as another strong year, with nuances between the levels of success.
Let’s start with a look at some of the critical players in the data center and IT infrastructure markets. This segment fueled the AI appetite in 2023, driving valuations higher and consuming essentially every chip that these players could produce. I see no reason not to have another 20%-50% increase in silicon and infrastructure opportunities, a way for nearly all players to benefit to some degree. Nvidia
NVDA,
+6.43%
is obviously the leader in the clubhouse, benefiting with a more than 200% increase in stock price over the past year thanks to its dominance in the data center for its GPUs, powering the most intense and complicated workloads to train the AI models revolutionize computing. Though other companies were playing catch up in 2023 and will continue to do so in 2024, I expect the rise of competing chip options from Advanced Micro Devices
AMD,
+5.48%
and in-house developed silicon from the likes of Microsoft
MSFT,
+1.89%,
Alphabet
GOOGL,
+2.29%,
and Amazon.com
AMZN,
+2.66%
to st …
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Let’s start with a look at some of the critical players in the data center and IT infrastructure markets. This segment fueled the AI appetite in 2023, driving valuations higher and consuming essentially every chip that these players could produce. I see no reason not to have another 20%-50% increase in silicon and infrastructure opportunities, a way for nearly all players to benefit to some degree. Nvidia
NVDA,
+6.43%
is obviously the leader in the clubhouse, benefiting with a more than 200% increase in stock price over the past year thanks to its dominance in the data center for its GPUs, powering the most intense and complicated workloads to train the AI models revolutionize computing. Though other companies were playing catch up in 2023 and will continue to do so in 2024, I expect the rise of competing chip options from Advanced Micro Devices
AMD,
+5.48%
and in-house developed silicon from the likes of Microsoft
MSFT,
+1.89%,
Alphabet
GOOGL,
+2.29%,
and Amazon.com
AMZN,
+2.66%
to st …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]