Move Over Nvidia: Experts Bullish On Intel's AI Chip, Predicts Surge In These Three Global Stocks
Portfolio Pulse from Benzinga Neuro
Morgan Stanley predicts significant benefits for TSMC, Alchip, and Wistron from Intel's new AI chip, Gaudi 3. TSMC will fabricate the chip, Alchip will provide design services, and Wistron will supply baseboards. The demand for AI chips is expected to drive revenue growth for these companies, with Intel's Gaudi shipments potentially reaching 300-400k units in 2025, generating $2-3bn in revenue. TSMC and Alchip are considered long-term winners in the AI semiconductor market.
April 24, 2024 | 11:51 am
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Alchip's involvement in the design of Intel's Gaudi 2 and 3 chips, coupled with its strategic relocation to Japan, positions it as a key player in the AI semiconductor market.
Alchip's design services for Intel's AI chips and its strategic relocation to Japan indicate a strong positioning in the AI semiconductor market, likely benefiting from the sector's growth.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Intel's introduction of the Gaudi 3 AI chip is expected to resolve supply issues by the second half of 2024, potentially boosting its stock value.
Intel's Gaudi 3 chip launch and the resolution of supply constraints are likely to enhance its market position and stock value, especially given the anticipation and speculation around its undervaluation.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
TSMC is set to fabricate Intel's Gaudi 3 chips, which is expected to further drive its revenue growth, already bolstered by a 16.5% increase YoY in Q1 2024.
TSMC's role in fabricating the Gaudi 3 chips positions it to benefit from the growing demand for AI chips, contributing to its revenue growth and reinforcing its market leadership.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 95
POSITIVE IMPACT
Wistron, as the predicted primary baseboard supplier for Intel's Gaudi 3 chip, is poised to benefit from the surge in demand for these AI chips.
Wistron's involvement in supplying baseboards for Intel's Gaudi 3 chips suggests a direct benefit from the anticipated increase in demand for these AI chips, potentially boosting its business.
CONFIDENCE 65
IMPORTANCE 70
RELEVANCE 80