Data Centers on the rise says analysts

Analysts at Barclays Capital raised their ratings on Advanced Micro Devices (AMD), Qualcomm, and Seagate Technology Holdings, claiming that the market will not revert to lower financial numbers and that data center chips are defying the industry’s numerous glitches.

The Philadelphia Semiconductor Index increased by up to 3 per cent, bringing the index’s gain from a two-year low in mid-October to more than 30 per cent. This outperforms the roughly 10 per cent increase in the tech-heavy Nasdaq 100 Index over the same time period. Stein also raised his forecast for the semiconductor industry, predicting a more than 100 per cent increase over the next two years.

Chipmakers such as AMD and Nvidia Corp. are also benefiting from Meta’s investments, which are pouring billions of dollars into creating a metaverse version. Chipmakers like Nvidia are also growing in importance, not only as a major player in the graphics chip market, but also in the design of complex computing tasks required to power AI applications. Because Nvidia has the potential to power AI, it is Wall Street’s top pick to profit from the ChatGPT frenzy.

Although the industry is expected to face additional challenges in the near future, analog chips appear to have no upside, and a correction in chipmakers for industrials and automakers is just getting started.

The sources for this piece include an article in Datacenterknowledge.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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