TLDR:
– Artificial intelligence (AI), particularly generative AI, is becoming a major focus in the tech sector
– Companies like TSMC, Nvidia, and IBM are gaining shares due to the AI boom, while Intel is falling behind
As companies in the technology and adjacent fields release their Q4 results, investors are closely watching how artificial intelligence (AI) will impact their future earnings. SK Hynix, a South Korean chipmaker, recently reported an operating profit for the first time in five quarters, thanks to increased sales of high-performance DRAM memory used in AI systems. This highlights the growing emphasis on AI in the tech sector.
TSMC, Nvidia, and IBM are some of the companies that have gained shares in the tech market due to the AI boom. TSMC predicts that their revenues may grow by 26% this year due to AI-related demand. Nvidia is also benefiting from the generative AI trend, which has gained popularity. IBM has recently entered into a quantum computer deal with universities in Tokyo, Seoul, and Chicago, further positioning themselves in the AI sector.
However, Intel, a major player in the field, is falling behind. The company has faced challenges in meeting the growing demand for AI-related products, resulting in a decline in their shares. This indicates the intense competition in the AI sector and the necessity for companies to keep up with the industry’s advancements.
Overall, the hunt for future AI winners continues as companies recognize the potential for growth in this sector. Companies like TSMC, Nvidia, and IBM are capitalizing on the AI boom, while Intel is faced with the challenge of catching up. The increasing focus on generative AI further emphasizes the importance of AI in the tech sector’s future.