From Nasdaq:

Semiconductor stocks have outperformed the broader market in 2023, with the PHLX Semiconductor Sector index gaining 66% compared to the S&P 500’s 24% gain. Artificial intelligence (AI) chip demand has significantly boosted prominent semiconductor companies such as Nvidia and Advanced Micro Devices.

The PC market is slated for a possible rebound in 2024 after experiencing a decline in sales from 2022-2023. Market research firms IDC and Canalys are forecasting a 3.4-8% increase in PC shipments next year due to AI-enabled PCs and Microsoft’s end of support for Windows 10 in 2025.

Nvidia and AMD, both key suppliers of chips for PCs, stand to benefit from a potential resurgence in PC sales. Nvidia has seen a notable recovery, particularly in its gaming division, and is focusing on the emerging market of generative AI. Meanwhile, AMD’s PC-focused business and AI processors have experienced strong growth.

Analysts are projecting a 17% revenue increase for AMD next year, while both Nvidia and AMD are well-positioned to take advantage of the recovery in the PC market, making them attractive investment options for the future.



Read more: Here’s Why Nvidia and AMD Are Set to Skyrocket in 2024