From Nasdaq: 2024-06-27 09:00:00

In 2024, the semiconductor sector has seen significant growth, with the PHLX Semiconductor Sector index up 33%, outperforming the S&P 500 index. However, Advanced Micro Devices (AMD) and Marvell Technology (MRVL) have only experienced gains of 9% and 19% respectively due to underperformance in the sector.

AMD is poised for growth in the AI chip market, with expectations of revenue from AI data center chips reaching $4 billion this year. With increasing demand for AI-enabled PCs and data centers, AMD is forecasted to see earnings rise by 32% in 2024 and maintain strong growth over the next few years.

Marvell Technology is also capitalizing on the AI chip market, targeting custom AI chips that could generate $30 billion in revenue by 2027. With anticipated growth in the custom AI chip market and data center segment, Marvell’s earnings are expected to rise significantly over the next few years.

Both AMD and Marvell show promise in the AI chip market, with potential for robust earnings growth in the future. While both companies face challenges in certain segments, their focus on AI could drive future success and make them attractive options for investors looking to capitalize on this growing market.



Read more at Nasdaq: Better Artificial Intelligence (AI) Stock: Advanced Micro Devices vs. Marvell Technology