tech
Wall Street sees 'changing of the guard in AI' as Intel, AMD shares soar while Nvidia lags
Intel, AMD and Micron surged double digits this week as investors bet on CPU makers and memory companies powering the next stage of AI
TL;DR
- Nvidia, though still prosperous, is no longer the sole focus of AI infrastructure investment, with Wall Street shifting towards other hardware companies.
- Chipmakers Advanced Micro Devices (AMD) and Intel, along with memory maker Micron, have experienced substantial stock gains, more than doubling in value this year.
- The surge in memory stocks like Micron is attributed to a global shortage driving up prices, with key customers receiving only a fraction of their requirements.
- The demand for Central Processing Units (CPUs) is increasing as the focus shifts from chatbots to AI agents, potentially doubling the data center CPU market by 2030.
- AMD is seeing strong growth in the server CPU market, driven by AI agents, and has raised its future growth forecasts.
- Intel is undergoing a revival, partly due to U.S. government investment and potential deals with Apple for processor production.
- Corning, a fiber-optic cable maker, has secured a significant deal with Nvidia and a prior deal with Meta, indicating growth in optical technologies for AI data centers.
- Analysts compare the current semiconductor market's rapid ascent to the dot-com bubble of the late 1990s, with some warning of potential corrections.