The SOX index is being adjusted! Check out the NVIDIA supplier brands that are being prepared now and the room for growth!
$NVIDIA(NVDA.US$ ofThe stock price is in the 1,100 dollar rangeI put it on.Good financial results and strong demand for AI semiconductorssupports stock appreciation. Meanwhile, it is composed of NVIDIA and its suppliersSOX Index (Philadelphia Semiconductor Stock Index)The day after the all-time high was hit on 5/28FallingI did it. Risk aversion in response to an increase in long-term US interest rates is in the background.
On the other hand,fundamentalsIf you look at it,The earnings outlook for semiconductor stocks led by NVIDIA is generally good. NVIDIA CEO Jensen Huang indicated at the financial results briefing on 5/22 that demand for the latest AI semiconductors is expected to exceed supply over 2025. Not only NVIDIA, but also major suppliers will benefit in terms of performance.
This time,Confirm suppliers with relatively high sales ratios compared to NVIDIA and stocks with strong performance forecastsI tried it. It can be said that it is a stock you want to prepare when adjusting the SOX index.
If you check NVIDIA's main suppliers based on Bloomberg's supplier list (*), it is as follows.
(*It was compiled by Bloomberg based on data from each company, and some data includes predictions. Since the reference dates for each company's materials do not necessarily match, the list of major suppliers is only reference data. (However, since it is based on relatively recent disclosure information, it can be said that it is close to the current situation.)
NVIDIA's main suppliersThe largest foundry in the world $Taiwan Semiconductor(TSM.US$There are also many Taiwanese and Korean companies, such as Weisoshitsu, which manufactures AI baseboards and GPU platforms, and SK Hynix and Samsung Electronics, which have the 1st and 2nd world market share for AI semiconductor memory.
American companies are contract manufacturing companies that specialize in the optical communication industry $Fabrinet(FN.US$We handle ODM (design and manufacture products under other companies' brands) for various industries $Flex Ltd(FLEX.US$Provides semiconductor packaging and testing services $Amkor Technology(AMKR.US$ , and the 3rd largest global market share in the AI semiconductor memory market $Micron Technology(MU.US$ There are things like that.
Since NVIDIA's main supplier can be expected to benefit from NVIDIA's business expansion, it is presumed that its stock price will also be strong. However, the actualStock price performance is mixedIt was. For example, while TSMC has risen 50% since the beginning of the year, Intel has fallen 40% since the beginning of the year.
Although Intel is an NVIDIA supplier, the sales ratio to NVIDIA is only about 0% to 1%. Rather than being affected by sales from NVIDIA, Intel's performance is greatly influenced by sales of semiconductors for personal computers, which it is the main force of. Meanwhile,In the case of TSMC, sales from NVIDIA were 10% of the totalOccupy,The benefits from strong demand for NVIDIA AI semiconductors are far greater。
Below,Stocks with a relatively high sales ratio compared to NVIDIA (US listed stocks)Regarding,Check earnings forecasts and room for stock price increases (divergence rate from target stock price)I tried it. Additionally,Currently, the sales ratio to NVIDIA is not high, but collaboration with NVIDIA is currently being strengthened, and it is a brand whose benefits are likely to increase in the futureI also added it. For example, Micron and Dell fall into this category.
●MicronMass production of HBM (broadband memory) used in NVIDIA's AI semiconductors began in February this year. Also, in the current financial results announcement, earnings forecasts exceeding market expectations were shown, reflecting strong demand surrounding AI software.
●Dellannounced the strengthening of collaboration with NVIDIA at the “Dell Technologies World” event on 5/20 (*).
●Dellannounced the strengthening of collaboration with NVIDIA at the “Dell Technologies World” event on 5/20 (*).
Dell, which has strengths for government agencies and enterprises, can be expected to benefit as the introduction of AI (introduction of products equipped with NVIDIA AI semiconductors) spreads to government agencies and companies. Also, business performance is expected to expand due to the spread of AI PCs. $Microsoft(MSFT.US$Dell, which has also partnered with, announced 5 “Copilot+ AI PC” products on 5/20.
Based on the table above,In addition to the divergence rate from the target stock price, if earnings forecasts for the next 2 fiscal years are also taken into account,Provide semiconductor packaging and testing services $Amkor Technology(AMKR.US$ or the biggest foundry in the world $Taiwan Semiconductor(TSM.US$, a major memory company $Micron Technology(MU.US$ There seems to be a strange investment in things like that.
General IT company's $Dell Technologies(DELL.US$The stock price has already exceeded the target stock price, $NVIDIA(NVDA.US$ There is also a possibility that analysts will raise target stock prices in the future, based on the expanded introduction of products by government agencies and companies, and benefit expectations from the spread of AI PCs. It is conceivable that Dell also deserves attention as a strong candidate for push purchases during adjustments.
Created 5/30/24 Market Analyst Amelia
Source: Created by Bloomberg by Moomoo Securities
Source: Created by Bloomberg by Moomoo Securities
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
