NVIDIA's announcement of upcoming AI chip Blackwell drives surge in semiconductor stocks

From Nasdaq: 2024-06-06 08:47:00

On June 5, NVIDIA stock reached a new all-time high of $1,224.40, driving the Nasdaq Composite to a 2% gain. The S&P 500 also hit a new high, and the Philadelphia Semiconductor Index surged to an all-time high. This growth was fueled by NVIDIA’s announcement of its upcoming AI chip Blackwell.

NVIDIA reported first-quarter fiscal 2025 revenues of $26.04 billion, up 262% year over year, exceeding expectations. Adjusted earnings per share were $6.12, beating estimates of $5.49. The company expects sales of $28 billion in the fiscal second quarter. NVIDIA currently holds a Zacks Rank #1 (Strong Buy).

The AI market is expected to grow significantly, with estimates suggesting it could reach nearly $2 trillion by 2030. PricewaterhouseCoopers International Ltd. projects AI could contribute up to $15.7 trillion to the global economy by 2030. Advanced Micro Devices, Micron Technology, Taiwan Semiconductor, and Qualcomm are four stocks set to benefit from this growth.

Advanced Micro Devices is introducing new AI-based processors, with its MI350 chip platform expected to perform 35 times better in inference compared to its current MI300 series. Micron Technology anticipates pricing increases for DRAM and NAND chips due to AI servers, 5G adoption, and IoT devices. Taiwan Semiconductor Manufacturing is a major chip manufacturer for AI, while Qualcomm is seeing success in the AI PC market.



Read more at Nasdaq: NVIDIA Pulls Up AI Semiconductor Space: 4 Stocks to Watch