For a basic understanding of what a semiconductor is, let us consider a tiny circuit comprised of transistors and wiring set up on a small silicon wafer (sheet). The basic purpose of this circuit made on silicon, a half conductor, half insulator, is to alter the flow of electric current passing through it and thereby provide binary signals that devices can use to process data.
At the very minimal level, this is the contraption used to power a smart LED bulb in your house, and in its most sophisticated form, this technology enables autonomous driving vehicles and computers with processing powers unimagined a few decades ago. Thus it is no wonder that this industry is often referred to as the new ‘oil’, given its critical importance in sustaining the infrastructure of every sector of the global economy. Drones, smart tractors in agricultural fields, data centers that process millions of gigabytes of data, and the latest smartphone in your palm; all these devices use semiconductor chips as their ‘brains’.
As the pandemic changed population behaviors and led to a broader shift towards digital mediums for work and play, a surge in demand for smart devices led to a shortage of semiconductor chips, which was especially exacerbated by the supply chains already being disrupted due to the lockdowns. This affected product deliveries for smartphones, automobiles, and a range of electronics industries. JP Morgan analyst Gokul Hariharan expects this shortage to linger on until at least mid-2022, after which he sees supplies becoming more readily available. Some analysts fear the crunch may persist until 2023.
Regardless of when supplies once again meet demand, the semiconductor industry is reaching new heights. According to Fortune Business Insights, the global semiconductor market is forecasted to grow from $452.25 billion in 2021 to $803.15 billion in 2028, at a CAGR (compound annual growth rate) of 8.6%. The industry grew 21% in 2021 despite being fraught with supply issues, and according to IC Insights, will expand by 23% in 2022, with total semiconductor sales expected to increase 11% and reach a record valuation of more than $680 billion. Another report by IC Insights, an expert in semiconductor market analysis, states that the top 25 companies in the chip-making business saw revenues climb significantly in 2021, with Advanced Micro Devices, Inc. (NASDAQ:AMD) growing its sales by 65%, and NVIDIA Corporation (NASDAQ:NVDA) by 54% during the year.
Governments around the world recognize the significance of the semiconductor industry in protecting and advancing their national economic interests. The US House of Representatives passed the America Competes Act in February, which aims to set aside $52 billion to boost the semiconductor industry in the United States. This is part of America’s plan to become self-reliant in the critical semiconductor industry and reassert itself over economic rival China. In March, Reuters reported that the CEOs of Intel Corporation (NASDAQ:INTC) and Micron Technology, Inc. (NASDAQ:MU) will testify before the U.S. Senate Commerce Committee to make a case for $52 billion in government subsidies for chip manufacturing in the United States.
Spending by semiconductor firms has also seen a significant uptick in recent years as they aim to boost production. Intel Corporation (NASDAQ:INTC) plans to spend €80 billion in the European Union over the next ten years to boost its manufacturing footprint and create a resilient and diversified chip ecosystem on the continent. It will also spend €17 billion towards the construction of a semiconductor fab mega-site in Germany, where production is expected to start by 2027. The world’s largest semiconductor foundry, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), plans to spend $40-$44 billion in capital expenditures in 2022, as compared to roughly $30 billion in 2021.
Advances in technologies such as 5G, artificial intelligence, cloud computing, autonomous vehicles and smartphones will rely on the power, stability and growth of the global semiconductor industry. Therefore, it would be wise to know which companies are among the biggest names in the game. Let’s now take a look at our list of the top 12 semiconductor companies in the world.
We chose the biggest semiconductor firms in the world based on their market capitalization, after a detailed study of the global semiconductor industry. We mentioned the company’s products, future plans and market standing, as well as revenue figures for 2021.
Number of Hedge Fund Holders: 15
Market Cap: $39.07 billion
STMicroelectronics N.V. (NYSE:STM) is a Swiss company which manufactures semiconductor integrated circuits and discrete devices used by a range of industries around the world including computing, telecommunications, industrial, and consumer electronics. The company’s revenue for 2021 stood at $12.76 billion, an increase of 24.88% from 2020.
STMicroelectronics N.V. (NYSE:STM) announced on March 9 that it has released new radiation-hardened ICs (integrated circuits) in low-cost plastic packages that would provide important functions for the electronic circuitry in low-cost satellites, which will be used to deliver services such as earth observation and transmission of broadband internet from low-Earth orbits.
On February 28, the firm announced that it was introducing the third generation of MEMS sensors, which will enable the next upgrade in performance and features for smartphones, and across a range of industries, including healthcare and retail. These sensors by STMicroelectronics N.V. (NYSE:STM) can provide the highest accuracy for product features including activity detection, indoor navigation, and precision industrial sensing.
On February 17, Credit Suisse analyst Adithya Metuku maintained an ‘Outperform’ rating on STMicroelectronics N.V. (NYSE:STM) shares, and bumped the price target on them to €65 from €60.
Of the hedge funds tracked by Insider Monkey, Renaissance Technologies was a leading shareholder of STMicroelectronics N.V. (NYSE:STM) in the fourth quarter, having increased its stake by 394% over the previous quarter, to give it 1.53 million shares valued at $75.78 million.
In addition to NVIDIA Corporation (NASDAQ:NVDA), Intel Corporation (NASDAQ:INTC) and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM); STMicroelectronics N.V. (NYSE:STM) is a top semiconductor company.
Number of Hedge Fund Holders: 44
Market Cap: $49.29 billion
NXP Semiconductors N.V. (NASDAQ:NXPI) is a Dutch provider of semiconductor technology such as microcontrollers, application processors, gyroscopic sensors, and more. These products are used in car infotainment systems, smartphones and security applications. NXP Semiconductors N.V. (NASDAQ:NXPI) provides its automotive radar technology to top automobile firms around the world, and the company can benefit as more cars around the world adapt ADAS (Advanced Driver Assistance Systems).
The Dutch firm co-invented near field communication (NFC) technology in collaboration with Sony and Inside Secure, and its NFC chips are used in many devices to enable contactless payments. NXP Semiconductors N.V. (NASDAQ:NXPI) also provides chip sets for use in electronic passports and RFID tags and labels, as well as technology for its MIFARE brand, which is currently deployed by several major public transit systems around the globe for automated fare collection.
NXP Semiconductors N.V. (NASDAQ:NXPI) posted annual revenue of $11.06 billion for 2021, which was up 28.46% year-on-year. The firm generates almost half of its revenue from automotive chip sales, and could have a strong 2022 on the back of an expected improvement in car sales this year.
On February 2, Truist analyst William Stein kept a ‘Buy’ rating on NXP Semiconductors N.V. (NASDAQ:NXPI) shares, and increased the price target on them to $265 from $250. The analyst noted that the firm posted a “nearly perfect quarter”, and that it also raised its dividend and share buyback program significantly.
Fisher Asset Management held roughly 898,000 shares worth $204.5 million in NXP Semiconductors N.V. (NASDAQ:NXPI) during the fourth quarter, making it the top shareholder of the firm.
Number of Hedge Fund Holders: 62
Market Cap: $76.27 billion
Lam Research Corporation (NASDAQ:LRCX) is a California-based firm which offers semiconductor processing equipment used in the fabrication of integrated circuits. As the global demand for semiconductor chips and microcontrollers goes up and firms invest billions in chip-making plants, companies such as Lam Research Corporation (NASDAQ:LRCX) that make semiconductor manufacturing equipment are set to enjoy steady growth. Even though the particular dynamics of the company’s offerings call for heavy investments into R&D to keep up with the times, Lam Research Corporation (NASDAQ:LRCX) is one of the frontrunners in its segment, which has high barriers to entry, giving the company a dominant position that it seeks to maintain.
Some of the most prominent semiconductor manufacturers around the world, such as Micron Technology, Inc. (NASDAQ:MU), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Samsung, are clients of Lam Research Corporation (NASDAQ:LRCX), with each firm accounting for more than 10% of Lam Research’s revenues.
In January, Berenberg analyst Tammy Qiu maintained a ‘Buy’ rating on Lam Research Corporation (NASDAQ:LRCX) and noted that all mainstream semiconductor chip manufacturers are spreading out their spending over the next several years due to the increasing level of complexity in chip design. Qiu thinks that the multi-year roadmap for the segment shows that spending will remain high in the coming years, and sees the semiconductor shortage gradually resolving by the end of 2022. Citi analyst Atif Malik added Lam Research Corporation (NASDAQ:LRCX) to the firm’s US Focus List on March 18 and maintained a ‘Buy’ rating on the company’s shares with a $750 price target. Malik noted that the firm has outsized memory sales exposure relative to its U.S peers and that shares are down 28% year-to-date, presenting a good entry point.
Billionaire Ken Fisher’s Fisher Asset Management was the top shareholder of Lam Research Corporation (NASDAQ:LRCX) in the fourth quarter, with 1.8 million shares valued at $1.29 billion. The fund recently increased its holding in the company by 4%.
Number of Hedge Fund Holders: 83
Market Cap: $88.60 billion
Micron Technology, Inc. (NASDAQ:MU) is a semiconductor firm specializing in memory products and storage solutions. The firm is a leader in DRAM products, which are dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; and NAND products which are non-volatile and re-writeable semiconductor storage devices. As the world adapts 5G technology, Micron Technology, Inc. (NASDAQ:MU) is expected to benefit greatly as smartphones with 5G capability have 50% higher DRAM and twice the NAND capability as compared to 4G smartphones. Products by the firm are also used in the automotive sector, the server and communications field, and in consumer electronics and computers around the world.
In March, Micron Technology, Inc. (NASDAQ:MU) partnered with Idaho Power to construct a 40-megawatt solar power project in Boise, Idaho near its corporate headquarters. This project is part of Micron’s sustainability and green energy goals, and will put the firm on the path towards using 100% renewable energy for its U.S operations by 2025.
Fitch Ratings upgraded Micron Technology, Inc. (NASDAQ:MU) to “BBB” from “BBB-” in early March, a stable rating outlook. The ratings agency noted that current supply shortages for non-memory components are amplifying strong secular demand for memory and storage, driven by increasing content across a well-diversified set of end markets. Fitch believes that Micron’s $1-2 billion of predicted average annual free cash flow provides the firm ample room to increase its investments as part of its commitment to maintaining technology leadership in the semiconductor space.
On March 1, Micron Technology, Inc. (NASDAQ:MU) announced it was sampling the world’s first vertically-integrated 176-layer NAND solid-state drive for data centers. The Micron 7450 SSD is able to meet the most demanding requirements of data center workloads with its NVMeTM, which delivers quality-of-service latency at or below 2 milliseconds, a wide capacity range and the broadest set of form factors available. This will allow Micron Technology, Inc. (NASDAQ:MU) to respond to customers’ evolving needs in the market, and support strengthened device security.
Number of Hedge Fund Holders: 78
Market Cap: $118.55 billion
Applied Materials, Inc. (NASDAQ:AMAT) is up next on our list of the biggest semiconductor companies in the world. It is based in California, and offers equipment used to build semiconductor chip technology.
Applied Materials, Inc. (NASDAQ:AMAT) provides chip manufacturing plants with manufacturing tools and process technologies used to build high-end displays and chip products. The company provides LCD fabrication equipment to the flat panel display industry, used by smartphones and television screens. It also makes and sells solar photovoltaic (PV) manufacturing systems to the solar industry. Its clients include Intel Corporation (NASDAQ:INTC), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and Samsung, among others.
In April 2021, during its Investor Meeting, Applied Materials, Inc. (NASDAQ:AMAT) announced plans to grow its revenue, earnings and free cash flow by enabling customers to accelerate improvements in chip power and performance, as well as cost and time to market. The firm also said it plans to generate 70% of future revenue from services and parts through long-term agreements based on the subscription model.
On March 11, Applied Materials, Inc. (NASDAQ:AMAT) announced a $6 billion share repurchase authorization, which the firm said “demonstrate(s) Applied Materials’ confidence in the long-term growth of our markets, the strength of our technology, and our ability to generate strong cash flow and attractive shareholder returns.” In February, Citi analyst Atif Malik gave Applied Materials, Inc. (NASDAQ:AMAT) a ‘Buy’ rating and set a price target of $180, up from $178.
Former Vice President Al Gore’s Generation Investment Management was the top shareholder in Applied Materials, Inc. (NASDAQ:AMAT) at the end of December, with a stake comprising 4.27 million shares valued at approximately $672 million.
Number of Hedge Fund Holders: 53
Market Cap: $166.54 billion
Texas Instruments Incorporated (NASDAQ:TXN) deals in the provision of analog chips, microcontrollers, multi-core processors, and embedded processors to clients around the world. These products are used for power and consumption management in many consumer electronics such as personal computers and smartphones.
Based in Dallas, Texas Instruments Incorporated (NASDAQ:TXN) was founded in 1930 and initially operated as an oil and gas company. It later switched to working for the defense industry, also producing products for the seismic industry. The firm started working primarily in the semiconductor industry in 1958, and later sold its defense segment to Raytheon Technologies Corp (NYSE:RTX) in 1997. Texas Instruments Incorporated (NASDAQ:TXN) produced the world’s first silicon transistor in 1954, and also developed the world’s first pocket transistor radio during the same year. Its list of inventions also includes the hand-held calculator and the single-chip microcontroller. The firm currently owns tens of thousands of technological patents around the globe.
Texas Instruments Incorporated (NASDAQ:TXN) also produces chips, sensors and radars for vehicle safety systems including Advanced Driver Assistance Systems (ADAS) technology currently deployed by top automobile makers around the world.
Texas Instruments Incorporated (NASDAQ:TXN) posted revenue of $18.35 billion for 2021, an increase of 26.85% year-over-year. Of the hedge funds tracked by Insider Monkey, First Eagle Investment Management was the top shareholder of Texas Instruments Incorporated (NASDAQ:TXN), with a position consisting of 3.32 million shares worth $625.24 million.
Number of Hedge Fund Holders: 75
Market Cap: $177.63 billion
QUALCOMM, Incorporated (NASDAQ:QCOM) is behind the Snapdragon chipsets found in many smartphones around the world, and its patented CDMA (code division multiple access) technology is an integral part of the global wireless communications industry, especially 4G and 5G infrastructure. The California-based firm sells semiconductors to be used in a wide range of products such as autonomous vehicles, smart watches, laptops and wi-fi technology.
QUALCOMM, Incorporated (NASDAQ:QCOM) supplies semiconductor chips to smartphone giants Samsung and Apple, as well as Huawei, Oppo, Vivo, Xiaomi, LG Electronics and Sony. Qualcomm currently supplies Apple with modem chips for all of its devices, though the company predicts it may soon provide only 20% of Apple’s requirements as the iPhone-maker looks to self-supply modem chips. Still, QUALCOMM, Incorporated (NASDAQ:QCOM) believes that even when excluding sales to Apple, its growth in smartphones will be faster than the overall market, given its relationship with high-end phone-makers such as Oppo, Xiaomi and Vivo.
On February 3, Canaccord analyst T. Michael Walkley maintained a ‘Buy’ rating on QUALCOMM, Incorporated (NASDAQ:QCOM) shares, and raised his price target on them to $250 from $225. The analyst sees the company benefiting from the increased adoption of 5G technology in smartphones, which use 50% more technological parts than 4G handsets. He also sees the firm enjoying strong growth trends in the automotive and Internet of Things (IoT) segments, and add that growth in its radio frequency (RF) business will also contribute to expanding margins and overall revenue growth.
In November 2021, QUALCOMM, Incorporated (NASDAQ:QCOM) announced its financial targets for the next several years. By 2024, the firm expects its IoT revenue to reach up to $9 billion. Automotive revenues are expected to reach $3.5 billion in the next five years and $8 billion in a decade. The firm expects its addressable market opportunity to grow from the present figure of $100 billion to $700 billion in the next ten years, as digitally connected gadgets become prevalent in all spheres of commercial and personal life.
Alkeon Capital Management has a $970 million stake in QUALCOMM, Incorporated (NASDAQ:QCOM) as of the fourth quarter, consisting of 5.3 million shares, making it the top shareholder of the firm in our database. In 2021, QUALCOMM, Incorporated (NASDAQ:QCOM) posted $36.04 billion in revenue, up 35.02% year-over-year.
Along with NVIDIA Corporation (NASDAQ:NVDA), Intel Corporation (NASDAQ:INTC) and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM); QUALCOMM, Incorporated (NASDAQ:QCOM) is one of the largest semiconductor companies in the world.
Number of Hedge Fund Holders: 69
Market Cap: $186.79 billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) makes graphic processing chips, microprocessors, motherboard chipsets, and embedded processors for personal computers, servers, and workstations. Its main clients include Google, Twitter, Microsoft, Hewlett Packard Enterprise, Lenovo, and Dell. In November 2021 the firm also signed Meta Platforms Inc (NASDAQ:FB) as a customer for its EPYC data center chips, which are used for high-performance functions such as cloud computing or inside large enterprises, and which cut power usage by around 25%.
On March 15, Advanced Micro Devices, Inc. (NASDAQ:AMD) unveiled the world’s most advanced desktop gaming processor, the AMD Ryzen 7 5800X3D processor, which delivers 15% more gaming performance compared to processors without stacked cache technology. In 2022, Advanced Micro Devices, Inc. (NASDAQ:AMD) plans to launch 5nm Zen 4 CPUs in 2022, which could include an integrated RDNA 2 GPU, to allow AMD to compete against Intel and Nvidia in CPUs and GPUs simultaneously. In the first half of 2022, industry analysts expect Advanced Micro Devices, Inc. (NASDAQ:AMD) to continue to take market share from rival Intel in server chips.
On February 24, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced that its board of directors had approved an $8 billion share repurchase program, with company CEO Lisa Su noting “With our strong financial performance, we are able to increase investments to drive long-term growth while returning additional value to our shareholders.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) recorded revenue of $16.43 billion for 2021, a 68.33% increase from 2020. As of March 25, the firm’s shares have gained 54.59% in the last 12 months, and 10.64% in the last six months. In the fourth quarter, Fisher Asset Management upped its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD) by 27%, to almost 20 million shares valued at $2.87 billion.
Number of Hedge Fund Holders: 72
Market Cap: $197.00 billion
Intel Corporation (NASDAQ:INTC) is a chip-maker based in California which develops computer processors, graphic cards, motherboard chipsets, and other related computing products. Its list of main clients includes HP,Dell and Lenovo. The firm also created the world’s first metal oxide semiconductor, and is behind the x86 microprocessors which are used by most personal computer devices.
In March, Intel Corporation (NASDAQ:INTC) announced that it would invest over €80 billion in the European Union over the next ten years, in order to bring the most advanced tech to Europe and create a next-gen European chip ecosystem, whilst also addressing the requirement for a more diversified and resilient supply chain. Under this plan, €17 billion will be spent towards the development of a semiconductor fab mega-site in Germany, which will also be subsidized by public funding. This site will see construction commence by 2023 and production start by 2027. Intel will also create a new R&D and design hub in France, and invest in various business endeavors in Ireland, Italy, Poland and Spain.
In February, Intel Corporation (NASDAQ:INTC) agreed to acquire Tower Semiconductor for $5.4 billion. The Israeli firm is a leading foundry for analog semiconductor solutions, and its acquisition will help Intel become a major provider of foundry capacity around the world.
Intel Corporation (NASDAQ:INTC) launched a fully vertical, standalone foundry business called Intel Foundry Services (IFS) in March 2021, as part of its vision to become a major provider of semiconductor foundry services in the U.S and Europe. Intel plans to tap into the Foundry business, which will have a $100 billion addressable market by 2025, to diversify semiconductor foundry manufacturing capacity away from Asia to ensure a secure and sustainable supply chain for the United States and the rest of the world.
Intel Corporation (NASDAQ:INTC) saw its revenue for 2021 come in at $79.02 billion, an increase of 1.49% year-over-year. The firm announced in February that it expects year-over-year revenue growth of 5-9% in 2023 and 2024, and sees it increasing to 10%-12% by 2026.
Baupost Group was the top shareholder of Intel Corporation (NASDAQ:INTC) in our database at the end of Q4 2021, with roughly 18 million shares valued at $928.9 million.
Number of Hedge Fund Holders: 62
Market Cap: $249.60 billion
Broadcom Inc. (NASDAQ:AVGO) ranks next on our list of the biggest chip producers in the world. The California-based firm offers a diverse portfolio of semiconductor and software products that are used in wireless connectivity systems, routers, processors, fiber optics, and data center switches. The firm also provides set-top box system-on-chips (SoCs) and fiber channel networking products used in data centers. Broadcom Inc. (NASDAQ:AVGO) deals in infrastructure software solutions which are used by enterprises to build, manage, and secure complex digital ecosystems. The main clients of Broadcom Inc. (NASDAQ:AVGO) include IBM, Linksys, Logitech, Dell and Cisco Systems, along with many others.
On February 24, Broadcom Inc. (NASDAQ:AVGO) announced its broad, industry-leading PCIe Gen 5.0 portfolio, which is setting the foundation for the ecosystem to build high-performance, next-generation servers. Broadcom’s switches and custom silicon products known as PCIe Gen 5.0 SerDes are now available to cloud providers, original equipment manufacturers (OEM) and original design manufacturers (ODM) and are currently undergoing testing for wide-scale interoperability.
Baird analyst Tristan Gerra maintained an ‘Outperform’ rating on Broadcom Inc. (NASDAQ:AVGO) shares on March 4, noting that demand remains strong and is expected to accelerate year-on-year this quarter. The growth drivers for the firm include enterprise IT, hyper-scale and cloud, switches upgrades in networking, storage network connectivity, and next-generation PON and DOCSYS in broadband. JPMorgan analyst Harlan Sur has an ‘Overweight’ rating on Broadcom Inc. (NASDAQ:AVGO), and sees the firm’s business continuing to accelerate. He sees Broadcom’s solid earnings results and future guidance reflecting the strong leverage it has in its end markets and its strong product cycles.
As of March 25, shares of Broadcom Inc. (NASDAQ:AVGO) have gained 30.46% in the last 12 months, and 24.57% in the last six months. The firm recorded $27.45 billion in fiscal 2021 revenue for the period ending October 31, a 14.91% increase year-over-year.
Number of Hedge Fund Holders: 72
Market Cap: $533.22 billion
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest semiconductor foundry in the world, making chips for the biggest global tech companies. The Taiwanese firm is a pure-play foundry and is known as the ‘backbone’ of the semiconductor industry, as companies including Apple, Intel, Qualcomm and NVIDIA outsource their chip manufacturing to Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM).
In January, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) outlined plans to spend a record $40-$44 billion in capital expenditures for 2022, up from around $30 billion in 2021. This will further solidify its position as the largest foundry in the world. In 2021, TSMC saw its revenues generated by sales to Apple increase 20% year-on-year to reach $14.3 billion, approximately 26% of the firm’s total wafer revenue for the year. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) will also manufacture Apple’s new M1 Ultra SoC chip using a 5nm process node and advanced packaging technology. It supplies industry-leading 5 nano-metre chips to Apple, and is working on introducing a 3nm chip by 2023.
Automotive firms also outsource their chip manufacturing to Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and these orders are expected to rise at a faster-than-previously-predicted pace. TSMC’s dominant position in the market will see it attract orders for AI chips used in autonomous driving from companies such as Tesla, NVIDIA, Qualcomm, and Intel. In the 7/5nm foundry process segment, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has commanded a market share exceeding 90%.
Number of Hedge Fund Holders: 110
Market Cap: $665.75 billion
NVIDIA Corporation (NASDAQ:NVDA) deals in the provision of graphic processing units (GPUs) to consumers for high-performance computer usages such as gaming, design and editing. The crypto boom has also led to more people using NVIDIA’s graphic cards to mine cryptocurrencies. The firm’s portfolio of computing products include the Quadro series of video cards for professional graphics, the Tegra series used in cellular phones, and the nForce series for multimedia functions.
As the metaverse hype picks up, NVIDIA Corporation (NASDAQ:NVDA) is the forefront beneficiary of this trend as computers utilize bigger graphic chips to simulate digital worlds in complex detail. The firm is also supplying the main ‘brain’ chip for use by NIO’s new electric vehicle called ET7. The Chinese automaker is expected to release the highly autonomous EV in the first quarter of 2022. NVIDIA Corporation (NASDAQ:NVDA) also unveiled its own CPU called Grace in April, enabling it to directly challenge CPU giants such as Intel and AMD for CPU market share. Amazon uses NVIDIA chips in its Amazon Web Services data centers as well.
JPMorgan analyst Harlan Sur sees NVIDIA Corporation (NASDAQ:NVDA) as “1-2 steps ahead of its competitors.” He reiterated an ‘Overweight’ rating on the company’s shares with a $350 price target on March 23. The analyst noted that with its leading silicon hardware and software platforms, along with a strong ecosystem, Nvidia is well-positioned to enjoy growth from major secular trends in artificial intelligence, high performance computing, gaming, and autonomous vehicles. The firm has also recently announced a next generation Hopper accelerated computing architecture, as well as a next-gen H100 chipset that targets datacenter acceleration.
As of March 25, NVIDIA Corporation (NASDAQ:NVDA) has seen its share price jump 115.69% in the last 12 months, and 27.85% in the last six months. Revenue for the 12-month period ending January 31, 2022 stood at $26.91 billion, jumping 61.4% year-on-year.