TECH - Nvidia AMD Broadcom Among Biggest Beneficiaries Of AI Explosion To $400B Market: Analysts | Benzinga
Mizuho Securities bumped up its price target for chipmakers leveraging artificial intelligence (AI), even as most of these stocks have run up sharply for the year-to-date period.
Strong Ramp-Up: AI chip demand is likely to ramp up steadily in the first half of 2024 before accelerating further in the second half, said analyst Vijay Rakesh in a note.
Ahead of Nvidia Corp.’s (NASDAQ:NVDA) quarterly results, due on Feb. 21, and Broadcom, Inc.’s (NASDAQ:AVGO), due on March 7, channel checks revealed tight supplies of former’s H100 AI accelerator chipset despite lead times contracting.
That said, “overall demand far outstrips supply,” the analyst said.
The analyst also noted that original design manufacturer Super Micro Computer, Inc. (NASDAQ:SMCI) said demand was up 40% from the second half of 2023, potentially reflecting AI ramps.
Nvidia’s impending B100 launch bodes well for the company’s 2024 guidance, he added.
Nvidia teased the new B100 Blackwell graphics processor last year. The company will reportedly more than double the performance of the newly announced H200.
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