Not Just Nvidia Or AMD But This Lesser-Known Chip Stock Is Riding The AI Boom, Says Fund Manager
Portfolio Pulse from Benzinga Neuro
KLA Corp (NASDAQ:KLAC), a semiconductor equipment company, is highlighted by fund manager Stephanie Niven as benefiting from the AI boom due to its role as a supplier to Taiwan Semiconductor (NYSE:TSM), which manufactures AI chips for NVIDIA Corp (NASDAQ:NVDA). KLA's focus on reducing manufacturing errors and wastage aligns with sustainability goals, contributing to its stock surge of 25% in 2024 and 89% over the past year. Despite concerns of a potential near-term drop due to its significant price increase, analysts remain bullish on KLA's fundamentals.
March 11, 2024 | 3:51 am
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POSITIVE IMPACT
KLA Corp is recognized for its significant role in the AI boom and its sustainability efforts in semiconductor manufacturing, leading to a 25% stock surge in 2024.
KLA Corp's role as a supplier to TSMC for NVIDIA's AI chips and its focus on sustainability have positively impacted its stock performance, with a significant surge in 2024. Analysts remain bullish despite the stock's rapid price increase, indicating a positive short-term outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
NVIDIA Corp, as a leading AI chip manufacturer with TSMC as its exclusive supplier, remains at the forefront of the AI technology market.
NVIDIA's role in the AI market, bolstered by its exclusive manufacturing partnership with TSMC and indirect benefits from KLA's efficiency improvements, suggests a positive short-term impact on its stock.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
Taiwan Semiconductor, as KLA's largest customer and exclusive manufacturer of high-end AI chips for NVIDIA, plays a crucial role in the AI supply chain.
TSMC's exclusive partnership with NVIDIA for manufacturing AI chips and its significant relationship with KLA underscore its pivotal position in the AI technology supply chain, likely benefiting its stock in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80