Semiconductor Stocks Soar on Surging AI and Data Center Demand
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Nvidia is the semiconductor standout, with estimated 237% revenue growth in Q1 and 83% growth for the year fueled by insatiable demand for its AI and data center chips.
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Micron is another top performer, with estimated 58% revenue growth this year driven by strong memory pricing and surging demand from AI servers.
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Numerous semiconductor stocks are outpacing broader indices, with 16 companies seeing over 20% YTD stock price gains. Stocks with AI exposure are trading at premium valuations.
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Skyworks reported record free cash flow of $753 million in Q4, leading the sector with a 62% free cash flow margin. 18 semiconductor stocks had 30%+ free cash flow margins.
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Our research has urged members to pay close attention to semiconductors across emerging tech trends like AI since 2019. Ideal tech investments due to innovation leadership, margins, and cash generation.