Nvidia On Track To Topple Samsung, Intel As Biggest Chipmaker By Revenue; Will The Momentum Continue In 2024?
Portfolio Pulse from Shanthi Rexaline
Nvidia Corp. (NASDAQ:NVDA) is set to become the biggest chipmaker by revenue in 2023, surpassing Intel Corp. (NASDAQ:INTC) and Samsung. Nvidia's revenue for the first nine months of 2023 was $38.82 million, an 85% increase year-over-year, and is projected to reach $58.86 billion for the full year, a 118% increase from the previous year. Intel's estimated full-year revenue is $53.95 billion, a 14.5% decline, while AMD (NASDAQ:AMD) is expected to report $22.63 billion, slightly down from 2022. Nvidia's growth is driven by the adoption of AI technology, with its AI chips in high demand. Nvidia's stock has surged 234% year-to-date, outperforming the S&P 500 and other major tech stocks, with analysts predicting a further 35% upside.
December 26, 2023 | 10:35 am
News sentiment analysis
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NEGATIVE IMPACT
AMD is likely to report a slight decrease in revenue to $22.63 billion for 2023, compared to $23.6 billion in 2022, as it competes with Nvidia in the AI space.
AMD's expected slight revenue decline and the intense competition with Nvidia in the AI sector could create headwinds for the stock in the short term, though the impact may be less severe than for Intel.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Intel is projected to see a decline in full-year revenue by 14.5% to $53.95 billion for 2023, losing its lead in chip revenue to Nvidia.
Intel's estimated decline in revenue suggests potential challenges ahead and could negatively impact investor sentiment in the short term, especially in light of Nvidia's contrasting growth trajectory.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Nvidia is expected to become the largest chipmaker by revenue in 2023, with significant growth attributed to AI technology adoption. Its stock has already seen substantial gains and analysts remain bullish with a 35% upside target.
Nvidia's projected revenue growth and its current year-to-date stock performance indicate strong investor confidence and market dominance, especially in the AI sector. The positive analyst price target further supports the potential for continued stock appreciation in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100