Nov 21, 2024

Nvidia’s ($NVDA) ecosystem relies on a network of suppliers, which play a critical role in supporting its booming business in AI and graphics processing. As of November 21, 2024, the stock performance of some key suppliers reveals a mixed picture, reflecting both the opportunities and challenges in the broader semiconductor and technology markets.

Fabrinet ($FN)

• Opening Price (Jan 2, 2024): $186.92
• Closing Price (Nov 21, 2024): $230.01
• Year-to-Date Change: +$43.09 (approximately 23.05% increase)

Fabrinet, a key player in optical communications and electronic manufacturing, has enjoyed a strong year. Its 23% YTD gain highlights robust demand for its services, likely driven by Nvidia’s increasing need for high-performance components to support its AI growth.

Amkor Technology ($AMKR)

• Opening Price (Jan 2, 2024): $32.75
• Closing Price (Nov 21, 2024): $26.35
• Year-to-Date Change: -$6.40 (approximately 19.54% decrease)

Amkor Technology, specializing in semiconductor packaging and testing, faced headwinds this year. Its nearly 20% decline reflects potential challenges in the semiconductor supply chain or reduced demand in certain segments, despite Nvidia’s strong performance.

Flex Ltd. ($FLEX)

• Opening Price (Jan 2, 2024): $21.77
• Closing Price (Nov 21, 2024): $40.53
• Year-to-Date Change: +$18.76 (approximately 86.19% increase)

Flex Ltd. has been the standout performer among Nvidia’s suppliers, with an impressive 86% YTD gain. The company’s ability to scale its manufacturing operations and meet Nvidia’s growing demands for advanced hardware has clearly resonated with investors.

What These Trends Indicate

The varied performance of Nvidia’s suppliers underscores the differing dynamics within the semiconductor and manufacturing sectors. Companies like Fabrinet and Flex Ltd. have capitalized on Nvidia’s growth, while others, like Amkor Technology, may be grappling with industry-specific pressures or operational challenges.

As Nvidia continues to dominate the AI and GPU markets, its suppliers’ ability to adapt and scale will be critical. These performance trends also provide valuable insights for investors tracking Nvidia’s broader ecosystem.