Nvidia breaks out above the triangle consolidation! Here are the top 5 semiconductor stocks with high performance and stock price correlation, "AI semiconductor demand is crazy".

◇ Providing high-performance power solutions based on semiconductors. They supply products across a wide range of fields such as computers, data centers, automobiles (including ADAS-related products), etc. They have maintained solid business expansion and achieved positive growth even during the industry's downturn.

The performance for the April-June 2024 period exceeded market expectations due to the increased demand for AI power solutions. The management commented, 'Design wins from Google, Amazon, Meta Platforms, etc., have not yet grown significantly, but they are expected to come in the future. We believe there are great opportunities.' Based on the strong performance of the core business segments, performance expansion is expected to continue in the future. The earnings announcement is scheduled for October 30th.

The world's largest foundry. Major US semiconductor companies, including Nvidia, follow a fabless model (no factories) and outsource production to TSMC, Samsung Electronics, etc. TSMC not only leads the world in foundry scale but also in technology, benefiting from the expansion of demand for AI semiconductors.

TSMC is famous as an apple supplier, but in terms of market revenue composition ratio, the proportion of the smartphone division is declining. In the April-June quarter of 2024, smartphones accounted for 33%, while the High Performance Computing (HPC) division increased to 52.2%. Details of performance including net profit for the July-September quarter will be announced on October 17th. The revenue for the July-September quarter, announced on the 9th, exceeded market expectations with a 39% increase year-on-year, demonstrating strong demand for AI semiconductors.

The world's No.1 semiconductor and display manufacturing equipment maker. Although not a Tier1 supplier for Nvidia, it has become a major supplier for TSMC. Applied Materials accounts for approximately 10% of TSMC's procurement costs (in 2023), ranking second after market leader ASML (approximately 41%). Samsung Electronics is the largest customer for Applied Materials, followed by TSMC, Intel, and Micron Technology.

Leader in cutting-edge lithography. Although not a Tier 1 supplier of Nvidia, ASML is the top supplier for TSMC. The proportion of ASML in TSMC's procurement cost is about 41% (2023). This is because ASML's cutting-edge lithography equipment costs hundreds of billions of yen per unit. The performance outlook indicates that revenue and profit growth for this quarter are expected to remain in the single digits. The following quarter is expected to expand by 20%.

Leading in semiconductor etching technology. Although not a Tier 1 supplier of Nvidia, Lam Research has become a key supplier for TSMC. Lam Research accounts for about 6% of TSMC's procurement cost (2023), ranking third after ASML and Applied Materials. Samsung Electronics is the largest customer for Lam Research, followed by Micron Technology, Intel, and TSMC.