“公司将全力应对客户们对于CoWoS先进封装产能的需求。last week$Taiwan Semiconductor (TSM.US)$The latest earnings results have significantly reinforced the investment view that the AI frenzy is still in full swing. When discussing the market demand for AI chips, Wei Zhejia, the leader of Taiwan Semiconductor, stated at the earnings conference that the outlook for AI chip demand is very optimistic, emphasizing that the demand from Taiwan Semiconductor's customers for CoWoS advanced packaging far exceeds the company's supply.
Wedbush analysts led by Daniel Ives believe that with the establishment of the next generation of artificial intelligence infrastructure, by 2027, the scale of the entire artificial intelligence infrastructure market dominated by NVIDIA's AI GPUs may increase significantly by 10 times. It is expected that in the next three years, capital expenditure in the field of artificial intelligence will reach 1 trillion US dollars. Therefore, companies focused on AI infrastructure, led by AI chips, are worth investors' sustained attention.
In addition, Goldman Sachs stated this month that in the next round of artificial intelligence investments, investors should not only focus on obvious choices like NVIDIA and AI infrastructure companies, but instead choose a range of platforms aimed at building direct applications for artificial intelligence.
Taiwan Semiconductor's earnings indicate that the AI frenzy is still unfolding.
"The company will fully address customers' demand for CoWoS advanced packaging capacity. Even if the capacity doubles this year and continues to double next year, it will still be far from enough," Wei Zhejia stated during the earnings conference. The capacity for CoWoS advanced packaging is crucial for a broader range of AI chips like Nvidia's Blackwell AI GPU. Nearly all AI innovators collaborate with Taiwan Semiconductor, confirming the real existence of AI-related demand, and I believe this is just the beginning.
Taiwan Semiconductor's management expects the company's full-year revenue to grow by nearly 30%, surpassing the general analyst expectation of 20%-25% and the company's guidance from the previous quarter. The management also anticipates that the revenue related to data center AI server chips from Taiwan Semiconductor this year, which includes a wide range of AI chips like Nvidia's AI GPU and Broadcom's AI ASIC, will more than double.
Analysts believe that Taiwan Semiconductor's performance demonstrates that the logic of stocks closely related to AI chips is extremely solid. Leading AI chip companies such as Nvidia may continue to see their stock prices rise significantly. Especially for Nvidia, the dominant AI chip player with a market share of 80%-90% in the datacenter AI chip sector, its stock price may continue to reach new highs, surpassing the common analyst expectation of $150, which may only be a matter of time.
The AI infrastructure market size is expected to grow significantly by 10 times by 2027. Focus on investment opportunities in individual AI chip stocks.
Led by Daniel Ives, Wedbush analysts have made bold and optimistic forecasts about future AI spending and infrastructure. Ives stated in an investor report: "We believe that with the establishment of next-generation AI infrastructure, the overall size of the AI infrastructure market dominated by Nvidia's AI GPUs may increase by 10 times by 2027. We estimate that capital expenditures in the AI field will reach $1 trillion in the next three years." Therefore, investors can continue to focus on investment opportunities in individual AI chip stocks, according to Ives' perspective:
$NVIDIA (NVDA.US)$ Ming-Chi Kuo stated in a recent report that the capacity expansion of Nvidia's Blackwell AI GPUs is expected to start in the early fourth quarter of this year, with shipments expected to be between 0.15 million and 0.2 million units in the fourth quarter. Shipments in the first quarter of 2025 are expected to grow significantly by 200% to 250%, reaching 0.5 million to 0.55 million units. This means that Nvidia may achieve its sales target of millions of AI server systems in just a few quarters. Nvidia's founder and CEO Jensen Huang revealed in a recent interview that the Blackwell architecture AI GPU has been fully put into production and the demand is "crazy."
$Broadcom (AVGO.US)$ Broadcom's extensive solutions cover everything from network infrastructure to customized hardware, especially in the field of datacenter switch chips, its technology provides core support for building datacenters to train AI models. Prominent research institutions and companies like Google, Meta, and OpenAI have established deep partnerships with Broadcom, jointly driving the cutting-edge research and application of AI technology.
$Advanced Micro Devices (AMD.US)$ At the Advancing AI 2024 conference held in San Francisco, advanced micro devices launched the MI325X, engaging in direct confrontation with nvidia's Blackwell chip. AMD stated that this AI chip is expected to be officially produced in the fourth quarter of 2024 and delivered to customers in the first quarter of 2025. AMD also unveiled the latest AI chip roadmap at the conference, with the MI350 series using the company's CDNA 4 architecture set to be released next year, while the MI400 series will adopt a more advanced CDNA architecture. AMD's CEO Su Zifeng said that by 2028, the datacenter, AI, and accelerator market is expected to grow to $500 billion.
Investors can also pay attention to the ai chip sector, and explore more related stocks of ai chips. $AI Chip (LIST2548.US)$ sector to view more related individual stocks of ai chips.
Goldman Sachs: Focus on platform companies building direct AI applications.
Goldman Sachs analysts stated that in the next round of artificial intelligence investments, investors should not only focus on obvious choices like nvidia and AI infrastructure companies, but rather select a range of platforms aimed at building direct applications of artificial intelligence.
"Our stock analysts believe that 'platform' stocks including databases and development tools will be the major beneficiaries of the next wave of artificial intelligence investment boom. These platforms can fully utilize artificial intelligence infrastructure, while providing building blocks for building the next generation of applications," they wrote in the report.
Analysts believe,$Microsoft (MSFT.US)$,$Datadog (DDOG.US)$Database management system.$MongoDB (MDB.US)$Software company $Elastic (ESTC.US)$And$Snowflake (SNOW.US)$When launching artificial intelligence integrated applications, it is positioned as the best "platform stock".
Goldman Sachs stated that despite the recent downturn in the fundamentals of many 'platform stocks' this year due to soft underlying factors, their valuations are at historical lows and are stabilizing as artificial intelligence investments rebound.
How to capitalize on the AI boom through etfs?
Furthermore, as investing in etfs can bypass the hassle of stock selection and make it easier to achieve industry average returns, investors can also capitalize on the rising opportunities in the ai sector by investing in etfs. Some of the etfs that track the ai industry include:
$iShares US Technology ETF (IYW.US)$
$Fidelity Covington Trust Msci Information Technology Index Etf (FTEC.US)$
$First Trust Dow Jones Internet Index Fund (FDN.US)$
Looking to find a favorite ETF? The Futubull ETF Zone will help you! Open Market > ETF > Theme ETF > AI ETF > Choose from different types of AI ETFs!
Editor/Jeffy
