The "Global AI Wind Vane" -$NVIDIA (NVDA.US)$After delivering an amazing report card to Wall Street, the stock price has entered a soaring mode, with cumulative gains of over 20% in the four days after the release of the earnings report.
Under multiple bullish factors, Wall Street continues to be bullish on the future trend of Nvidia. At the same time, Nvidia's excess returns have also sparked an AI "gold rush", from other chip manufacturers to other links in the AI industry chain, Wall Street is seeking to explore and layout more AI concept stocks. As we can see from the chart, as long as a company is associated with Nvidia, from chips to public utilities, there is a full effect of making money.
As we can see from the above figure, as long as a company is associated with Nvidia, from chips to public utilities, there is a full effect of making money.
Chip companies
$Arm Holdings (ARM.US)$,$Taiwan Semiconductor (TSM.US)$,$Qualcomm (QCOM.US)$,$Applied Materials (AMAT.US)$,$KLA Corp (KLAC.US)$,$Teradyne (TER.US)$,$ASML Holding (ASML.US)$,$Marvell Technology (MRVL.US)$,$Broadcom (AVGO.US)$,$Lam Research (LRCX.US)$,$Analog Devices (ADI.US)$,$Advanced Micro Devices (AMD.US)$A series of semiconductor companies have established close collaborative relationships with Nvidia. These companies also achieved good profits this year, with overall gains ranging from 12% to 60%.
At the beginning of the year, Futu News"Will the Chip Stock Boom Continue in 2024? In addition to Nvidia, Wall Street is also bullish on these companies."As mentioned in the aforementioned article, despite the strong performance of the semiconductor industry's stock prices in 2023, Wall Street is still bullish on the industry this year and predicts that this may be the beginning of an upward cycle. At this point in time, these chip stocks have indeed brought strong returns this year, and their stock prices have all far exceeded the target price given by Wall Street at the beginning of the year.
Data storage companies
Flash data storage solution provider$Pure Storage (PSTG.US)$Cumulative gains of more than 76% this year, with the company partnering with Nvidia to create a top-notch AI infrastructure.
Pure Storage is in a strong position in competition with traditional hard disk drives (HDDs), with significant growth in subscription revenue and an optimistic outlook on demand related to AI. Although HDDs are cheaper, high-performance storage is crucial for AI workloads, which means its future prospects are bright.
In addition, global storage chip giant $Western Digital (WDC.US)$, storage giant $Seagate Technology (STX.US)$have both recorded double-digit gains so far this year, with cumulative gains of over 47% and 11%, respectively.
Thermal management/cooling
The explosive development of AI has led to the emergence of a large number of data centers, and server cooling has become a major problem. As the only designated liquid cooling heat dissipation supplier of Nvidia.$Vertiv Holdings (VRT.US)$Having caught this 'overwhelmingly prosperous' wave, the stock price has risen more than doubled within the year, and has risen six times in the past two years. We have been overwhelmed with orders.
Vertiv's order volume at the end of March broke the record of $6.3 billion, with about one-third of the company's sales revenue coming from providing cooling systems for data centers.
Provider of electrical connections and protection solutions.$nVent Electric (NVT.US)$This year, it has risen more than 40% and Goldman Sachs previously predicted that its data center racks and cabinets, cable and power management, and cooling solutions would help the company win more business.
At the end of March,"Looking for the 'Next Nvidia'? Explore the AI Semiconductor Value Chain and Find All the Investment Opportunities!"As mentioned in an article before, Wall Street believes that cooling and power-related manufacturers also have the opportunity to take advantage of the AI business, including companies such as Vertiv and Eaton. Interested mooers can click to view.
Server
With the support of Nvidia's AI chips, server sales skyrocketed and became the most popular AI 'darling' in the capital market. The company's cumulative increase in the year is nearly twice, and has grown more than nine times since 2023.$Super Micro Computer (SMCI.US)$With the help of the generation of AI, a previously dormant sector, it has joined the ranks of AI pioneers, with its stock price doubling so far this year. Previously, Dell announced the release of multiple AI PCs and cooperation with Nvidia to help companies build their own 'artificial intelligence factories.'
Public Utility / Power Solutions$Dell Technologies (DELL.US)$In the wave of AI, an unexpected 'winner' emerged - public utilities. Maintaining the operation of AI data centers requires huge amounts of electricity, and the call for 'AI's end is electricity' is rising, and the heat of 'AI power generation stocks' is also sweeping on Wall Street.
In 2023, the company's overall sales volume of 18,000 kiloliters, +28.10% year-on-year, significant growth. Product structure, 10-30 billion yuan products operating income of 401/1288/60 million yuan respectively.
The weather is good today The weather is good today.
Please use your Futubull account to access the feature.$Vistra Energy (VST.US)$One of America's largest electricity producers and retailers, as well as the country's largest nuclear power and largest photovoltaic power generation trader - $NRG Energy(NRG.US)$, their stock prices this year rose by as much as 170%, 89%, and 64%, respectively.$Constellation Energy (CEG.US)$The sector with the possibility of taking advantage of the AI trend and soaring straight up on Wall Street if you missed the Nvidia train.$NRG Energy (NRG.US)$Within the year, the increase rates were as high as 170%, 89%, 64% respectively.
Please use your Futubull account to access the feature."Did not catch up with the Nvidia train? Wall Street points the way: this sector is expected to ride the AI wave and rise.",A new favorite in Wall Street: can this industry outperform the S&P and surpass Nvidia?,AI opens up a new era of electricity! Is now a good time to invest in US power stocks as they soar?,Is electricity the next beneficiary of AI? Learn how to invest in US power stocks.Morgan Stanley predicts that global AI-generated demand for electricity may double. Look it up, mooers who are interested.
In addition, UBS Group recently stated that $First Solar (FSLR.US)$is a 'neglected direct beneficiary' of AI-driven electricity demand growth, and has raised its target price from $252 to $270. Encouraged by this news, the company's cumulative gain in the past six trading days has reached 45%, and the cumulative gain since the beginning of the year is nearly 62%.
Copper/Optical Fiber
Although the market is shouting out that AI leads to electricity, behind it lies another type of crucial resource: copper - even electricity itself (renewable energy) contains copper. Coupled with factors such as global copper mining shortages, their cumulative gains this year have been 41% and 25%, respectively.$Southern Copper (SCCO.US)$,$Freeport-McMoRan (FCX.US)$Cumulative increases were 41% and 25%, respectively.
In AI datacenters, copper is mainly used for power distribution equipment and grounding and interconnection. Specifically, copper is heavily used in power transmission (such as cables, connectors, busbars), as well as heat exchangers and water tanks, grounding and interconnection, and pipelines and HVAC systems. As the world gradually eliminates carbon emissions, energy transformation, including the growth of electric vehicles and renewable energy technologies, is expected to drive a surge in copper consumption in the coming years.
Commodity trader Tocqueville said that by 2030, copper demand related to AI and data centers may reach 1 million tons, which will further exacerbate supply shortages.
AI chips lead to soaring copper prices. How can investors capture opportunities in the Hong Kong and US stock markets?,Is there still copper behind the AI craze? The 'Copper Specialist' is soaring, and these copper mining stocks have become the new investment favorite.,Don't just focus on tech stocks! Commodities are soaring. What investment opportunities are there in the Hong Kong and US stock markets?All have mentioned the logic behind the rise in copper prices and related investment opportunities. If you are interested, you can click to learn more.
Other partners
In addition to the above-mentioned companies, in fact, including UBS Group, software giants such as Nutanix (NTNX.US) and cloud giants,$Nutanix (NTNX.US)$,$Meta Platforms (META.US)$,$Netflix (NFLX.US)$,$Alphabet-A (GOOGL.US)$,$Palantir (PLTR.US)$,$Microsoft (MSFT.US)$, cloud data solution leader$Arista Networks (ANET.US)$, and other cloud service providers.$NetApp (NTAP.US)$All of them are beneficiaries of this "AI wave".
Mooers,
What is the next wave of AI?
Feel free to leave your thoughts in the comments section~
Editor/Somer
