Chip stocks bounced back strongly yesterday, recovering their losses from Friday, mainly due to easing U.S.-China trade tensions and Broadcom\u2019s major AI deal.<\/p>\n
Semiconductor stocks have been the biggest beneficiaries of the AI boom, as these companies provide the \u201cpicks and shovels\u201d for the AI gold rush.<\/p>\n
Semiconductor ETFs are also among the best-performing ETFs of the past decade, as chips, the fundamental building blocks of computation, have become integral to everything from smartphones to cars, laptops, PCs, video games, and data centers.<\/p>\n
Chip Megadeals: Bubble or Boom?<\/p>\n
Nvidia ((NVDA Quick QuoteNVDA<\/a> – Free Report<\/a>) ) and OpenAI announced a strategic partnership under which Nvidia will invest up to $100 billion in OpenAI. The investment will support new data centers with a capacity of at least 10 gigawatts of power. The Trump administration has also approved some Nvidia chip exports to the UAE.<\/p>\n AMD ((AMD Quick QuoteAMD<\/a> – Free Report<\/a>) ) shares have surged recently after the chip designer announced a multibillion-dollar agreement with OpenAI on data centers that will use AMD chips. Under the deal, OpenAI will purchase six gigawatts\u2019 worth of AMD chips and receive about a 10% equity stake in AMD, granted in phases upon reaching certain milestones.<\/p>\n AMD has long been viewed as a distant second in the AI chip market, which is dominated by Nvidia with more than a 75% market share.<\/p>\n OpenAI and Broadcom ((AVGO Quick QuoteAVGO<\/a> – Free Report<\/a>) ) also announced a partnership to develop and deploy 10 gigawatts of custom AI chips and computing systems over four years. Financial terms were not disclosed.<\/p>\n Intel ((INTC Quick QuoteINTC<\/a> – Free Report<\/a>) ), which lost its edge years ago to Taiwan Semiconductor Manufacturing Co. ((TSM Quick QuoteTSM<\/a> – Free Report<\/a>) ), received a boost as Nvidia invests $5 billion in Intel.<\/p>\n The investment follows the U.S. government\u2019s 10% stake in Intel, now worth about 50% more due to the company\u2019s stock rally. Both the Biden and Trump administrations have supported Intel to strengthen domestic chip manufacturing.<\/p>\n OpenAI estimates that one gigawatt of capacity costs about $50 billion to bring online, with roughly two-thirds of that spent on chips, hardware, and infrastructure, according to the Financial Times.<\/p>\n To learn more about these stocks, VanEck Semiconductor ETF ((SMH Quick QuoteSMH<\/a> – Free Report<\/a>) ), iShares Semiconductor ETF ((SOXX Quick QuoteSOXX<\/a> – Free Report<\/a>) ), and SPDR S&P Semiconductor ETF ((XSD Quick QuoteXSD<\/a> – Free Report<\/a>) ), please watch the short video above.<\/p>\n","protected":false},"excerpt":{"rendered":"Chip stocks bounced back strongly yesterday, recovering their losses from Friday, mainly due to easing U.S.-China trade tensions…\n","protected":false},"author":2,"featured_media":82070,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,2419,3149,61,1831,975,13043,60,13045,13046,13044,13047,696,4755,2234,13048,131,80],"class_list":["post-82069","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-financial","tag-financial-planning","tag-ie","tag-investing","tag-investment","tag-investment-advice","tag-ireland","tag-online-investment","tag-online-stock-trading","tag-online-trading","tag-quote","tag-quotes","tag-stock","tag-stock-market","tag-stock-quotes","tag-stocks","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/82069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=82069"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/82069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/82070"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=82069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=82069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=82069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}