Nvidia Corporation (NVDA, Financials) in the year thus far is up approximately 182% on last look, positioning it at the forefront of U.S.-listed semiconductor companies.
Its developments in artificial intelligence technologiesincluding the H100 Tensor Core GPUs necessary for training big language models like ChatGPT and the RTX 40 Series GPUs targeted at gamers and creative professionalshelp to explain this spike. Strategic alliances with big cloud companies such Amazon Web Services, Google Cloud, and Microsoft Azure have strengthened Nvidia’s market share even further.
With profits of $18.1 billion in the third quarter of 2024, Nvidia recorded a 206% annual year-over-year (YoY) net income of $9.2 billion, up 472% YoY. Especially, data center goods generated more than 70% of this income, which emphasizes the company’s emphasis on artificial intelligence-driven applications.
With a YTD increase of around 114%, Broadcom Inc. (AVGO, Financials) has also seen notable expansion.
Tomahawk 5 Ethernet devices and the company’s own application-specific integrated circuits have driven data center workloads in considerable part. In the fourth quarter of 2024 Broadcom disclosed revenue of $9.8 billion, a 15% YoY increase, and net income of $3.7 billion; the company forecasts $3 billion in revenue from AI-related products for the fiscal year 2024.
About 92.5% YTD increase has been recorded by Marvell Technology (MRVL, Financials).
In artificial intelligence storage and cloud computing, the company’s Bravera SC5 SSD controllers and Octeon 10 DPU series have become very popular. Marvell said net income of $220 million, an 11% YoY rise, and profits of $1.53 billion in the third quarter of 2024. By 2025, the business forecasts that items connected to artificial intelligence will make thirty percent of its income.
With a YTD increase of around 33%, Micron Technology (MU, Financials) is on a high as well.
Along with new DDR5 DRAM products in great demand for cloud and business industries, the firm unveiled HBM3 memory chips specifically for high-bandwidth artificial intelligence and high-performance computer uses. Attributed to inventory write-downs, Micron achieved income of $6.1 billion even though the fourth quarter of 2024 had a net loss of $895 million. Adoption of artificial intelligence is expected by the corporation to balance demand for its goods and price.
This article first appeared on GuruFocus.
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