When will the AI ​​craze subside? Some time ago, as the stock prices of technology giants such as Nvidia rose, many investors had such concerns: Will the AI ​​craze be a bubble?

On Monday, Nvidia's stock price rebounded, once again reflecting the strong demand for AI chips in AI data centers. According to Bank of America, the semiconductor bull market is still a long way from fading away. In fact, the upsurge in AI may reach its peak in mid-2026.

Nvidia

Nvidia's stock price rose on Monday, directly because analysts from UBS and Wolfe Research raised the stock's target price to $150, citing Nvidia's upcoming Blackwell platform. Analysts pointed out that the demand for Blackwell by large technology companies has grown significantly. Microsoft, Google, Meta Platforms, and Amazon have recently increased their investment in AI infrastructure and have shown a strong interest in Nvidia's data center components. Analysts predict that these large technology companies will spend more than $1 trillion on AI in the next five years, and Nvidia's development prospects are very impressive.

According to statistics, data center systems account for about 5% of global IT spending today, or $260 billion. However, by 2028, this figure may jump to $360 billion, indicating that the market demand for the construction of artificial intelligence data centers is constantly increasing.

source: uSMART SG

Broadcom

Broadcom shares have risen more than 20% in the past month, significantly outperforming the S&P 500's return of 3.63%. At the same time, Broadcom's upcoming 10-to-1 stock split has attracted a lot of investor interest.

It is reported that in the second quarter of fiscal 2024, Broadcom doubled its shipments of PCI Express switches and network cards for artificial intelligence backend infrastructure. Artificial intelligence sales increased 280% year-on-year and are expected to exceed $11 billion in fiscal 2024.

source: uSMART SG

Micron Technology

Micron Technology's stock price has risen 54% so far this year. Analysts are particularly enthusiastic about Micron. Analysts say the Idaho-based chipmaker is on the cusp of "one of the biggest cycles in history" in memory chips due to the artificial intelligence boom. Currently, Micron Technology's stock price is $130.69, which is at a recent low, and it is expected to have a large room for growth in the future. More than 90% of analysts have given Micron Technology a buy rating.

source: uSMART SG

Qualcomm

Qualcomm is marketing a new type of computer as "AI PC" like Microsoft, promising that its laptops and desktops will have built-in artificial intelligence capabilities. The new laptops differ from standard devices in that they add an additional processor designed to accelerate artificial intelligence functions, such as personal assistants and the ability to automate tasks.

Currently, Qualcomm's stock price has reached $207.89, with a year-to-date increase of 43%.

source: uSMART SG

Applied Materials

So far this year, Applied Materials has gained more than 50%. Recently, it announced a series of products and solutions designed to meet the patterning needs of "angstrom era" chips. AmaT launched innovative etching systems, CVD patterned films and metrology solutions to enhance chips using EUV and high NA EUV lithography technology.

Currently, Applied Materials' stock price has reached $246.29, and some analysts have given it a target price of $300. Applied Materials has attracted a lot of attention from investors.

source: uSMART SG

Follow us

Find us on Twitter, Instagram, YouTube, and TikTok for frequent updates on all things investing.

Have a financial topic you would like to discuss? Head over to the uSMART Community to share your thoughts and insights about the market! Click the picture below to download and explore uSMART app！

Important Notice and Disclaimer:

This document is prepared by uSMART. This document is not intended for or directed at persons under local laws or regulations that prohibit the distribution or publication of this document. This document is provided to the recipient only, and the information, materials, or analytical tools contained herein are provided to the recipient for informational and reference purposes only. This document should not be construed in any jurisdiction as constituting an offer, solicitation, recommendation, inducement, endorsement, opinion, or guarantee to purchase, sell, or trade any securities, financial products, or instruments or to engage in any investment or any transaction of any kind, nor is there any intention to solicit or invite the purchase or sale of any securities.

Investment involves risks. Before making investment decisions, the recipient should carefully read relevant offering documents to obtain further information, including risk factors. Past performance data does not imply similar future performance. Investments in the asset categories mentioned in this document may not be suitable for all recipients. This document does not consider the individual objectives, financial situation, or needs of any specific person who may access this document. Before engaging in any transactions, the recipient should take reasonable actions based on personal objectives and circumstances to ensure a clear understanding of the transaction and independently evaluate the suitability of the transaction, including assessing the potential risks and returns of the transaction, and if necessary, seek independent professional advice. The information and opinions contained in this document reflect the judgment of uSMART as of its publication date, and no further notice will be given in the event of changes. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.

The value of these securities and the income from them may fall or rise. Your investment is subject to investment risk, including loss of income and capital invested. Past performance figures as well as any projection or forecast used in this article is not indicative of its future performance.

This advertisement has not been reviewed by the Monetary Authority of Singapore.