AI Boom Spurs Search For New Winners Beyond Nvidia: Bloomberg
Portfolio Pulse from Shivani Kumaresan
Investors are expanding their focus beyond Nvidia in the AI sector, looking at companies in various industries such as electrical components, data centers, utilities, and technology supply chains. Companies like Amphenol, AES, TD Synnex, and Vistra are seeing significant gains due to AI-related growth.

May 24, 2024 | 5:37 pm
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NEGATIVE IMPACT
Intel's market cap is significantly lower than Nvidia's, highlighting diverging paths despite being larger than Nvidia as recently as 2020.
Intel's market cap has not kept pace with Nvidia's, indicating diverging performance in the AI sector.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
AES, an electric utility, has risen 30% since April due to AI-driven electricity demand.
The growth in AI infrastructure is increasing electricity demand, benefiting utility companies like AES.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 75
POSITIVE IMPACT
Amphenol, a maker of electrical components, has climbed 40% this year due to AI-related growth.
Amphenol's significant gains are driven by the increasing demand for electrical components in AI infrastructure.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
AXT Inc., a maker of compound semiconductor substrates, is up 35% this year after post-earnings rallies driven by AI growth.
AXT Inc. is benefiting from the increased demand for semiconductor substrates driven by AI growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Bank of America asserts that AI investments are no longer solely about Nvidia, predicting growth benefiting power, commodities, and utilities.
Bank of America's prediction indicates a broader impact of AI investments across various sectors.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Alphabet has seen double-digit gains this year due to its involvement in AI.
Alphabet's gains are driven by its significant involvement in AI technologies.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Meta Platforms has seen double-digit gains this year due to its involvement in AI.
Meta Platforms' gains are driven by its significant involvement in AI technologies.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Microsoft has seen double-digit gains this year due to its involvement in AI.
Microsoft's gains are driven by its significant involvement in AI technologies.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Nvidia has surged over 90% this year due to robust AI demand, but investors are now looking beyond Nvidia for new AI winners.
Nvidia's strong performance underscores robust AI demand, but the market is diversifying its focus to other potential AI beneficiaries.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 90
POSITIVE IMPACT
Super Micro Computers is expected to benefit from the growth of AI infrastructure, alongside Nvidia.
As a server manufacturer, Super Micro Computers is positioned to gain from increased AI infrastructure demand.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
TD Synnex, a technology supply chain services firm, is poised for its largest monthly gain since November 2022 due to AI growth.
TD Synnex is benefiting from the increased demand for technology supply chain services driven by AI growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Vistra, a power producer, has soared 150% this year as AI fuels electricity demand.
Vistra's significant gains are due to the increased electricity demand driven by AI infrastructure growth.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 80