Not just Nvidia, but the majority of top chip makers are gaining ground thanks to AI

The current increase in technology equities has been mostly fueled by artificial intelligence (AI).

The AI craze has increased the value of IT businesses by around $4 trillion so far this year. Last week, Nvidia’s dramatic climb helped the US Nasdaq exchange rise to its highest level since last August.

With chip manufacturers like Nvidia, Advanced Micro Devices (AMD), Taiwan Semiconductor Manufacturing (TSM), and Micron Technology (MU) leading the charge, hardware manufacturers in particular have seen tremendous growth.

Chipmakers are expanding as AI becomes a new technology buzzword

With increasing demand for its artificial intelligence processors, NVIDIA, known for its industrial-grade visual processing hardware and as the inventors of CUDA technology, has experienced a 166% increase in its stock price in only five months.

A number of Nvidia’s rivals as well as some of its competitors that produce high-performance computing and graphics solutions have witnessed a substantial increase in their stock prices.

The share price of Advanced Micro Devices (commonly known as AMD), the second-most popular option of GPUs for domestic consumers, has increased by 94% from $65 to its present price of $125 so far this year.

Similarly, shares of Taiwan Semiconductor Manufacturing Company (ticker $TSM), the largest specialized independent semiconductor foundry in the world that makes chips for several businesses, have increased 39% since the year’s beginning.

Another beneficiary of the recent AI craze is Micron Technology, a leading company in the semiconductor sector that had a 47% gain in its share price.

The firm creates a wide variety of memory and storage solutions, which are essential parts for AI and machine learning systems that demand speedy and effective data processing.

Big Tech Stocks Rise as They Turn to AI

Share prices for large tech firms are also rising, especially for those that specialize in generative AI, like Meta, Microsoft, and Alphabet.

Since the beginning of the year, shares in Meta, formerly known as Facebook, have increased by 116%. The emphasis of Meta has changed to contributions to open-source projects and artificial intelligence.

However, it’s vital to remember that Meta was previously in a rut as a result of its futile attempts to engage with the metaverse.

The business revealed earlier this month that ImageBind, a multimodal model that is capable of understanding six distinct data formats, has been open-sourced.

Early in April, Meta also unveiled the Segment Anything Model (SAM), a tool for locating items in pictures and movies.

The firm behind LLM GPT-4 and ChatGPT, OpenAI, has received a $13 billion investment from Microsoft, which is well known for its Windows operating system and Xbox game system.

Microsoft’s stock values, which have increased by around 40% in 2023, have been significantly influenced by the integration of GPT-4 into its Edge browser and Bing search engine.

The parent company of Google, Alphabet, has made significant investments in AI, including Tensor Processing Units (TPUs), cloud-based AI services, and the open-source TensorFlow framework.

The development of Bard and the company’s upgraded PaLM2 model has made them a strong competitor to ChatGPT. With shares up 40% so far this year, investors have responded favorably to LLM’s introduction of models catered to consumers’ wants.

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