To The Moon

🌟🌟🌟Big Tech Stocks are sizzling hot today and the best performers are Nvidia and AMD.  $NVIDIA Corp(NVDA)$ 

has jumped 5.4% today while $Advanced Micro Devices(AMD)$ 

is up 5.6%.

Nvidia has just announced that  its newest chips are designed to run AI at home.  The 3 new graphics cards are the RTX 4060 Super, RTX 4070 Ti Super and RTX 4080 Super - ranging in price between USD 599 and USD 999.  These cards have additional  tensor cores that are designed to run generative AI applications. Nvidia will also provide graphics cards in laptops from companies such as Acer, Dell and Lenovo.

Nvidia has also launched its new H200 chip in 2023  following the successful launch of H100 which shows that Nvidia is constantly churning new chips to stay competitive. 

Nvidia was the best performing Semiconductor stock in 2023 with a massive jump of 230% last year.  It looks like Nvidia is off to a great start this year.  Nvidia is also the market leader in specialised AI chips which has powered Nvidia 's market capitalisation to over USD 1 Trillion.

Wall Street Analysts are bullish on Nvidia with a Buy rating, Target price of USD 668.11, an upside potential of 29%.

$Advanced Micro Devices(AMD)$ 

is well positioned to take some market share from Nvidia with its new MI300 chips that have the processing power and memory that will allow it to compete with Nvidia in the data centre and AI markets.  According to CEO Lisa Su, the MI300 could contribute USD 2 billion to the top line in 2024.

AMD share price was up 130% in 2023 and much of that happened in the last 3 months of that year with its share price surging over 45%.

Wall Street Analysts are bullish on AMD with a Buy rating, Target price of USD 165, an upside potential of 13%.

$Intel(INTC)$ 

share price is up 3.2% today.  In 2023, Intel was up 65%.   Intel is building 2 chip fabrication plants in the US with funding from the US Chips Act.  In 2023, Intel did not have an AI chip offering.  However in 2024, Intel will launch the Gaudi 3, its 3rd generation AI accelerator in 2024.  The expectation is that it will outperform Nvidia 's H100 chip in data centre and deep learning applications.

Intel is also planning to launch its Falcon Shores GPU in 2025 which will merge Intel' s GPU and Gaudi capabilities in a single product.

Wall Street Analysts are bullish on Intel with a Buy rating, Target price of USD 68.00, an upside potential of 40%.

$Taiwan Semiconductor Manufacturing(TSM)$ 

share price is up 2.7% today and in 2023, it was up 27%.  Of the 4 semiconductor stocks   TSMC presents value for money as its stock can be purchased at just 21 times forward earnings.  One of the major concerns of TSMC is the geopolitical tensions between US and China.

TSMC is the largest semiconductor foundry company in the world.  It manufactures chips for many Tech Giants including Microsoft and Apple.  TSMC also partners with chip designers like Nvidia and AMD and has 58% market share in the 3rd party semiconductor manufacturing space.

TSMC is also building a fabrication plant in Arizona which will be funded by the Chips Act. The factory will be ready in 2025 and is expected to provide over 20% earnings growth in the next 5 years.

Wall Street Analysts are bullish on TSMC with a Buy rating, Target price of USD 122.00, an upside potential of 19%.

Semiconductors are essential components that power our every day lives.  They can be found in many digital products such as mobile phones, digital cameras, televisions, washing machines, EVs as well as medical equipment. 

In 2023, Semiconductor sales reached USD 520 billion worldwide.  It is projected to reach USD 990 billion by 2030.  Semiconductors are in  the early stages of a super cycle that will continue to grow exponentially in the future especially in the field of AI. 

 I believe that Nvidia, AMD, Intel and TSMC are the best semiconductor stocks to buy in 2024 and hold long term.  They are market leaders with wide moats, have excellent balance sheet, are profitable and have great management team. 

As Warren Buffett likes to say "It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price.". This emphasized the importance of long term investing in high quality companies. 

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