To The Moon

Recently, the stock price of $NVIDIA Corp(NVDA)$ , the semiconductor giant, has broken the all-time high again, with a market value exceeding US$1.3 trillion!

In addition to Nvidia, $Advanced Micro Devices(AMD)$ has also performed brilliantly, with its stock price nearing a record high!

The recent surge in the semiconductor market is partly due to CES 2024, the world's largest consumer electronics show. At this event, Nvidia, AMD, $Intel(INTC)$ $Lenovo Group Ltd.(LNVGF)$ and other semiconductor companies launched new products, especially AI PC chips.

If 2023 was the first year of generative AI, then 2024 is expected to become the first year of AI PCs! Both management at chip giants and observers in the technology industry believe that AI PCs are expected to drive the PC industry out of the trough!

Specifically, AI PCs mainly integrate NPU (Neural Processing Unit) into computer chips to achieve more powerful generative AI computing power.

Compared with ChatGPT in the cloud, AI PCs can run AI tools locally, reducing latency and protecting user privacy, which has certain advantages.

At CES 2024, AMD launched the Ryzen™ 8000G series desktop APU, the world's first desktop processor with an independent AI engine. With a computing power of 39TOPS, it is expected to be available at the end of January.

Compared to Intel's Core Ultra, the Ryzen 8000G has a leading position in AI performance, gaming performance, office performance, and energy efficiency.

In addition to AI PC chips, AMD also launched Versal Edge XA Adaptive SoC and Ryzen™ embedded V2000A series processors. These devices demonstrate AMD's leading position in the automotive technology industry and are designed to serve key automotive market segments including infotainment, advanced driver assistance systems (ADAS), and autonomous driving.

The Versal AI Edge automotive-grade Adaptive SoC introduces advanced AI capabilities that enable devices to be further optimized for numerous next-generation advanced automotive systems and applications including forward-looking cameras, cabin monitoring, LiDAR, 4D radar, surround view, automated parking assistance, and autonomous driving.

In the future, AMD is expected to compete with Nvidia and Intel's Mobileye for market share in the automotive chip market.

Overall, CES 2024 has caused a stir in the semiconductor industry and boosted the stock prices of related companies.

Although semiconductors have been in the spotlight in the past year with many companies' stock prices hitting or nearing all-time highs, many investors are cautious. However, in fact, the semiconductor bull market is far from over!

From a global perspective, global semiconductor industry sales totaled US$48 billion in November 2023, representing a year-on-year increase of 5.3% and a month-on-month increase of 2.9%, according to data released by the Semiconductor Industry Association (SIA) on January 9th.

This is the first time since August 2022 that year-on-year growth has been achieved:

The semiconductor industry has obvious cyclical characteristics. At present, it is just at a turning point. Taking AI PC as an example, although 2024 is the first year, considering that the popularity of AI PC needs killer applications to drive it, major PC manufacturers are expected to massively release AI PC products in the middle of this year.

Therefore, AMD and Qualcomm management, as well as Intel, generally believe that 2025 will usher in the outbreak of AI PCs. Intel predicts that AI PCs are expected to occupy 80% of the global personal computer market by 2028.

According to $Taiwan Semiconductor Manufacturing(TSM)$ 's December sales data announced today, monthly sales reached NT$176.3 billion, a year-on-year decline of 8.5%, but exceeding analysts' consensus expectations:

In addition, the CEO of $SK Hynix, Inc.(HXSCL)$ , a South Korean memory chip giant, recently said that the company's market value is expected to double in the next three years.

SK hynix's HBM products are used by Nvidia in AI GPUs, and they are one of the world's only three HBM suppliers, and their products are in the leading position, outperforming Micron.

From AMD's current market-to-sales ratio valuation, there is still room compared to the historical high. Moreover, analysts expect AMD's revenue growth rate to reach 17% in 2024, and a new historical high is inevitable.