Chipmakers Poised to Benefit from AI Growth Trade at Attractive Valuations
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TSMC is a key chip manufacturer for AI companies and trades at a low valuation. Its foundry market share and manufacturing expertise give it an edge.
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Super Micro Computer makes customized servers optimized for AI computing. Over 50% of revenue comes from AI systems and there is strong growth ahead.
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Broadcom recently acquired VMware which can be valuable for moving data between clouds for AI processing. Its networking chips also facilitate high-speed data center connections.
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AI revenue is still only 15% of Broadcom's semiconductor sales today but is expected to rise to over 25% next year.
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All 3 stocks trade around reasonable valuations despite strong exposure to high-growth AI opportunities.