The global chipmakers’ stock prices have been on the rise due to increased demand for high-end chips used in AI applications. This surge in stock prices has made chip stocks more attractive to investors. The largest chip manufacturing company in the world, Semiconductor Manufacturing in Taiwan (TSMC), reported a significant increase in revenue for April, signaling strong performance and growth potential for the company.
Three chip stocks that are considered safe bets in the sector include Broadcom (AVGO), Micron Technology (MU), and Super Micro Computer Inc. (SMCI). Broadcom is a global technology company known for its broad product portfolio, including data center networking, broadband access, software, and wireless connectivity. Barclays initiated coverage on Broadcom with a positive outlook, highlighting the company’s leadership in the data center silicon market and its potential to benefit from advancements in AI.
Micron Technology is a leading provider of memory and storage solutions, with a product portfolio that includes DRAM, NAND flash memory, and NOR flash memory. The company has seen a rise in its stock price due to strong demand for high-bandwidth memory, with analysts upgrading their ratings and price targets for the company.
Super Micro Computer Inc., known as Supermicro, specializes in high-performance server technology and innovation. Analysts have identified the company as a top chip stock to buy, referring to it as the “Switzerland of AI” due to its strong quarterly results and expertise in the AI dynamic.
Overall, the outlook for chip stocks remains favorable, with strong growth potential in the semiconductor industry driven by demand for high-end chips used in AI applications. Investors are advised to consider these three chip stocks as potential investments in the sector.
Article Source
https://investorplace.com/2024/05/3-chip-stocks-to-buy-to-invest-in-ais-brain/
