AI Chip – The Need for Semiconductors 🤖

Table of Contents

AI Chip – The Need for Semiconductors

Artificial intelligence is booming at the moment as ChatGPT is making global headlines. It was the talk for the last half-decade, but it’s now entering our everyday lives as AI will continue to evolve in different ways from current models. As this industry is projected for rapid growth, other industries in the tech sector are slated to benefit, and one of them is the semiconductor industry.

We’ve learned throughout the pandemic how vital semiconductors, also known as chips, are to our current economy. A vital component of goods ranging from refrigerators to vehicles, the chip industry became one of the victims of supply chain shortages during the pandemic due to the sky-high demand, but the industry has been able to overcome this hurdle.

As shown by industry giant Nvidia in their Wednesday earnings report, the chip market is set to benefit massively from the growth in AI. AI requires a massive amount of computing power in order to function properly and efficiently with all of the data it is storing and sending, which means specialized chips and processors are needed. This opens a new area for these businesses to supply the rising demand for these unique parts, and Nvidia has complete control of the AI processor area at the moment, fueling what was an amazing quarter for the company.

This won’t last forever as companies like AMD and Intel start to bite into Nvidia’s market share, but it’s a positive for the industry as a whole because analysts estimate that this AI chip market could result in tens of billions of dollars in sales. It doesn’t come at a better time as President Biden’s CHIPS Act is giving massive subsidies to boost domestic production, giving Nvidia and other semiconductor companies a major incentive to align their business boost with US economic growth. 

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

 

Share:
More Posts
Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.