Global chip stocks continued to "soar", Taiwan stocks got off to a "good start" in the Year of the Dragon, and TSMC's share price soared by 98%, a record high, and up 18% year-to-date.
Benefit from the booming development of artificial intelligenceSince last year, the market value of the chip industry has soaredOver the past three months, global chip stocks have soared about 40%, with the 27 largest companies reaching a record $5 trillion in market capitalization, roughly on par with the market capitalization of the U.S. healthcare industry. At the same time, the market-to-sales ratio of the chip industry reached nine times, a record high.
The leading stocks of chip stocks shine all over the market, and Nvidia is the most dazzlingThe company, which more than tripled its performance last year, was the best performer in the S&P 500, with Broadcom and AMD following suit.
In addition, U.S. stocks** are flocking to chip stocksWild discussion on the Reddit subreddit R Wallstreetbets platform.
The rise of the AI frenzy has ignited the excitement of the entire technology industry, and the upstream chip industry of the industrial chain is highly sought after, and companies from all walks of life will have to spend frantically on precision chips and other hardware to be at the forefront of the AI race.
Some investors and analysts believe that there is little that can stop chip stocks. Of the 53 analysts who rated Nvidia, all but four gave it a "* or equivalent" rating, even though the stock price has breached the average price target.
However, at the same time, some analysts pointed out that with the soaring value of chips, the price-to-sales ratio hit a record high, and the demand outlook for automotive chips is not optimistic, investors should remain cautious about the rally of chip stocks.
U.S. stocks** have been rushing to chip stocks recently, with Nvidia, ARM and Supermicro being the top three most mentioned by R Wallstreetbets in the past 24 hours, according to data from Swaggy Stocks on Wednesday.
Nvidia is a longtime darling of WallstreetBets, with 1,718 mentions in the 24 hours on Tuesday. Nvidia shares have been driven by growing demand for AI, with Nvidia shares **240% over the past 12 months.
Investors are gearing up for Nvidia's fourth-quarter earnings report, which will be released on Feb. 21, and the company's third-quarter earnings report is strong, and market expectations for it remain high. According to Benzinga Pro, analysts expect Nvidia to earn 4. per share in the fourth quarter$53 and revenue of $202$3.9 billion.
Among the most mentioned **, ARM followed closely behind, ranking second with 779 mentions. After ARM released a better-than-expected earnings report last week, **more than 100%, there was something on Tuesday**, and some will say that ARM will be the next Nvidia.
Supermicro is another chipmaker to watch this week, and shares have climbed nearly 100% since the company reported better-than-expected earnings in late January, similar to Arm's. However, ** are skeptical of its recent rally, noting that bears have a high interest in the company, which is currently 11., according to Benzinga Pro data97%** were shorted.
From Nvidia to ARM, to TSMC, and other giants in the chip industry, bullish voices are clearly in the majority, but as Louis-Vincent G**e, CEO of G**ekal Research, said, investors need to remain cautious.
Louis-Vincent G**e pointed out that the chip's price-to-sales ratio reached a record high of nine times, which also illustrates the question of whether sales can grow to match the correspondingly high valuation. Although global chip sales have recently been **, they have not yet surpassed the monthly highs reached in early 2022.
Slowing demand for electric vehicles is also part of the problem, with demand for automotive chips slowing and shares of low-end chipmakers for automotive and various other industrial uses struggling.
However, there are still many strategists who believe that chip stocks will continue to be strong**. Earlier this week, Mizuho analyst Vijay Rakesh raised his forecasts for Broadcom, Nvidia and Credo Technology, noting that these results will perform well due to strong consumption and demand.
Adam Parker, founder of Trivariate Research, pointed out that even if there may be a possibility, these are worth holding. Since there is no way to ** when the big correction will come, it is better to hold on to these ** all the time and go through the adjustment period.
Wall Street news, welcome **app to see more.