Hi Tigers, welcome to ”What the Tigers Say” [Cool]
This is a weekly column planned to share the great opinion from Tigers on ‘Semiconductor stocks skyrocketed this year, can you still get on the bus now?’.
$NVIDIA Corp(NVDA)$ once soared 29% on Wednesday, directly breaking through its all-time high. Nvidia’s surge tells us that the frenzy of AI is still going on. Semiconductor stocks have skyrocketed this year, can you still get on the bus now?
Below are some insights from Tiger @NAI500, @Alvin Chow and @Ryan_Z0528. Which opinions do you agree with？
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Click titles to read the full analysis:
1. @NAI500: Semiconductor Stocks Skyrocketed, Get on the Bus on AMD & ACLS Now?
Key Points:
To accelerate its AI strategy, AMD has consolidated its best AI teams into a single division headed by the former CEO of adaptive computing giant Xilinx. At present, $NVIDIA Corp(NVDA)$ occupies 90% of the AI semiconductor market, but $Advanced Micro Devices(AMD)$ is not ready to give up this piece of fat. Europe's fastest supercomputer $Luminex Resources Corp.(LUMIF)$ is powered by AMD's MI250X chip, and the company expects to deliver eight times more performance in its MI300 data center chip, which the company expects to release later this year. MI300 will be the world's first APU (accelerated processor).
By 2030, emerging concepts such as generative AI may add $200 trillion in output value to the global economy, which means that the demand for high-end data center chips will explode during this period. AMD's core consumer business may be weak now, but in the long run, with the help of AI, the company is expected to become one of the largest companies in the world.
Based on trailing 12-month earnings of $5.67 per share, the stock has a price-to-earnings ratio of 24.9, still below the tech sector average (the Nasdaq 100 has a P/E ratio of 28.1). Given the company's high growth and future revenue backed by a large order backlog, $Axcelis(ACLS)$ stock should enjoy a premium.
2. @Alvin Chow: Nvidia Gains Another 25% In One Day: Don't Short
Key Points:
$NVIDIA Corp(NVDA)$ currently holds the position of the sixth-largest company in the world based on market capitalization. It surpasses renowned giants such as Berkshire Hathaway, Meta Platforms, Tesla, TSMC, LVMH, Visa, ExxonMobil, JPMorgan Chase, and Samsung.
However, in terms of revenue, Nvidia's global ranking stands at 432nd. This significant disparity in revenue ranking implies that Nvidia's Price-to-Sales (PS) ratio is considerably higher compared to other companies. In terms of earnings, Nvidia ranks 355th. Following the recent 25% surge in its stock price, Nvidia's Price-to-Sales ratio would increase to 35x, while its Price-to-Earnings (PE) ratio would reach 216x.
The Data Center segment of Nvidia has defied the overall trend by achieving a growth rate of 14%. While this growth may not appear highly impressive on its own, the revenue projection for the upcoming quarter is truly extraordinary. The projected total revenue of $11 billion represents a staggering 64% increase compared to the same period last year and a substantial 53% growth compared to the latest quarter. This exceptional projection is what triggered Nvidia's significant 25% gain. It clearly indicates that the AI craze has resulted in tangible and substantial growth for Nvidia.
3. @Ryan_Z0528: 3 AI ETFs to Buy Before They Soar to New Heights in 2023
Key Points:
Specifically, $ROUNDHILL GENERATIVE AI & TECHNOLOGY ETF(CHAT)$ invests in several different areas related to generative AI, including software, cloud infrastructure, network infrastructure, and services. Currently, the ETF already holds 32 companies, of which the top ten companies account for 56.9% of the holdings. $NVIDIA Corp(NVDA)$ ranked first, followed by $Microsoft(MSFT)$ , and Google's parent company $Alphabet(GOOG)$ and $Advanced Micro Devices(AMD)$ ranked third and fourth.
With an expense ratio of 0.75%, the THNQ ETF offers exposure to $NVIDIA Corp(NVDA)$ , $Twilio(TWLO)$ , $Atlassian Corporation PLC(TEAM)$ , $Splunk(SPLK)$ , $Cloudflare, Inc.(NET)$ , $Amazon.com(AMZN)$ , $Microsoft(MSFT)$ and 62 other AI-related holdings. Since the start of the year, the THNQ ETF exploded seeing a YTD increase of 23%.
Interestingly, at a certain point in January, the AIEQ was reflecting year-to-date gains of over 16%, outperforming the S&P 500, the report said. However, the outperformance failed to continue. The AI Powered Equity ETF has gained 2.4% in 2023 so far.
Questions for you:
Semiconductor stocks skyrocketed this year, can you still get on the bus now?
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