“Global AI weather vane” ——$NVIDIA (NVDA.US)$After handing over an amazing report card across Wall Street, the stock price began to soar again. Four days after the results, the stock price increased by more than 20%, and the market value was close to Apple's, reaching 2.82 trillion US dollars.
As a leader in the AI field, Nvidia's revenue since the beginning of the year has reached 130%. This achievement not only highlights Nvidia's strong strength in the AI field, but also indicates unlimited possibilities for the future.
Under multiple benefits, Wall Street continues to be optimistic about Nvidia's subsequent trend. At the same time, Nvidia's excess returns have also set off an AI “gold rush”. From other chip makers to other links in the AI industry chain, Wall Street has begun to seek out and lay out more AI concept stocks.
As can be seen from the image above, from chips to utilities, as long as a company is associated with Nvidia, there is a full profit effect.
chip company
$Arm Holdings (ARM.US)$,$Taiwan Semiconductor (TSM.US)$,$Qualcomm (QCOM.US)$,$Applied Materials (AMAT.US)$,$KLA Corp (KLAC.US)$,$Teradyne (TER.US)$,$ASML Holding (ASML.US)$,$Marvell Technology (MRVL.US)$,$Broadcom (AVGO.US)$,$Lam Research (LRCX.US)$,$Analog Devices (ADI.US)$,$Advanced Micro Devices (AMD.US)$A number of semiconductor companies have established close partnerships with Nvidia. These companies also achieved good profits this year, with overall increases in the range of 12%-60%.
At the beginning of the year, Futu Information“Will chip stocks continue to rise in 2024? In addition to Nvidia, Wall Street is optimistic about these companies”In the article, it was mentioned that despite the strong stock price performance of the semiconductor industry in 2023, Wall Street is still optimistic about the industry this year and predicts that this may be the beginning of an upward cycle. Standing at this point, these chip stocks have indeed brought strong returns this year, and their current stock prices have all greatly exceeded the target prices given by Wall Street at the beginning of the year.
data storage company
Flash memory data storage solution provider$Pure Storage (PSTG.US)$With a cumulative increase of over 76% this year, the company teamed up with Nvidia to build the top AI infrastructure.
Pure Storage is in a strong position to compete with traditional hard disk drives (HDDs), has significant subscription revenue growth, and is optimistic about demand related to artificial intelligence. Although HDDs are cheaper, Pure Storage's high-performance storage is critical for AI workloads, which means the future looks bright.
Also, the global memory chip giant$Western Digital (WDC.US)$, storage giant$Seagate Technology (STX.US)$They also recorded double-digit increases during the year, rising more than 47% and 11% respectively.
Thermal management/cooling
The popularity of AI has brought a large number of data centers to prominence, and server cooling has become a major problem. And as Nvidia's only designated supplier of liquid cooling and cooling$Vertiv Holdings (VRT.US)$Having caught up with this “splash of wealth,” the stock price has increased more than 1 times during the year, 6 times in 2 years, and has been weak in receiving orders.
At the end of March, Vertiv set a record order volume of 6.3 billion US dollars, and about one-third of the company's sales came from providing cooling systems for data centers.
electrical connection and protection solutions provider$nVent Electric (NVT.US)$During the year, it surged by more than 40%, and Goldman Sachs had anticipated 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 exhaust investment opportunities!》As mentioned in an article, Wall Street believes that manufacturers related to cooling and power supply also have opportunities to take advantage of AI business opportunities, including companies such as Vertiv and Eaton. Interested friends can click to check it out.
servers
With the support of Nvidia's AI chip,$Super Micro Computer (SMCI.US)$Server sales have skyrocketed and become the most popular AI “darling” in the capital market. The company's cumulative increase of nearly 2 times during the year has increased by more than 9 times since 2023.
With the help of the generative AI wave, the one that was silent for a while$Dell Technologies (DELL.US)$It has now joined the ranks of AI trendsetters, and its stock price has doubled since this year. Earlier, Dell announced that it will release a variety of AI PCs and cooperate with Nvidia to help companies build their own “artificial intelligence factories.”
Utilities/Power Solutions
Under the wave of artificial intelligence, an unexpected “winner” has emerged — utilities. Since large amounts of electricity are required to maintain the operation of AI data centers, calls for “the end of AI are electricity” are gradually rising, and a boom in “AI power generation stocks” has also set off on Wall Street.
One of the largest electricity producers and retail energy suppliers in the US$Vistra Energy (VST.US)$, the largest nuclear e-commerce company in the United States$Constellation Energy (CEG.US)$and the largest photovoltaic producer$NRG Energy (NRG.US)$During the year, the increases reached 170%, 89%, and 64%, respectively.
Futu News“Missed the Nvidia train? Wall Street Guiding the Way: This sector is expected to be boosted by AI”,“Outperform S&P and surpass Nvidia? This industry is becoming a new Wall Street favorite”,“AI opens a big era of electricity! US power stocks followed the trend and “took off”; will now be a good opportunity to lay out?》,“Is electricity the next AI beneficiary? Learn how to invest in electricity stocks in one article》As mentioned in many other articles, Morgan Stanley predicts that the global demand for electricity from generative AI may double, so interested coworkers can check it out.
Also, recently UBS stated that$First Solar (FSLR.US)$It is “an overlooked direct beneficiary” of the increase in demand for electricity driven by artificial intelligence (AI), and raised the target price from $252 to $270. Stimulated by this news, the company's cumulative increase in the past 6 trading days was as high as 45%, with a cumulative increase of nearly 62% during the year.
copper/optical fiber
Although the end of AI in the market is the clamor for electricity, behind this, there is another type of resource that is extremely critical, and that is copper — even electricity itself (renewable energy) contains copper. Coupled with factors such as the shortage of global copper ore supply, this year$Southern Copper (SCCO.US)$,$Freeport-McMoRan (FCX.US)$The cumulative increases were 41% and 25%, respectively.
In AI data centers, copper is mainly used for power distribution equipment and grounding and interconnection. Specifically, copper is mainly used for power transmission (such as cables, connectors, busbars), as well as heat exchangers and sinks, grounding and interconnection, and piping and HVAC systems. As the world gradually removes carbon emissions, the energy transition, including electric vehicles and renewable energy technologies, is also expected to drive a surge in copper consumption over the next few years.
Commodity trader Tork said that by 2030, demand for copper associated with artificial intelligence (AI) and data centers may reach 1 million tons, which will further exacerbate supply shortages.
“AI chips are booming, and the big players are watching the copper price at a new high! How can the Hong Kong and US stock markets seize opportunities?》,“Is there still copper at the end of AI? “Dr. Copper” is booming, and these copper stocks have become new investment favorites》,“Don't just focus on tech stocks! Commodities are booming. What are the investment opportunities in the Hong Kong and US stock markets?》They have all mentioned the logic behind the rise in copper and related investment opportunities. If you are interested, you can click to check it out.
Other partners
In addition to the companies mentioned above, in fact, include$Nutanix (NTNX.US)$,$Meta Platforms (META.US)$,$Netflix (NFLX.US)$,$Alphabet-A (GOOGL.US)$,$Palantir (PLTR.US)$,$Microsoft (MSFT.US)$Software giants, and cloud giants$Arista Networks (ANET.US)$, Cloud Data Solution Company$NetApp (NTAP.US)$They are all beneficiaries of this “AI wave.”
Cow friends,
What's the next wave of AI?
Welcome to leave your thoughts in the comments area~
Editor/Somer