July 5th, 2022 | 11:28 CEST
Chips - Now it's really getting started! Intel, BrainChip, ARM, NVIDIA
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At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
Intel: Done its homework
When investors think of computer chips, Intel certainly comes to mind. The semiconductor company has been supplying components for PCs and other products for decades. Back in the 1990s, processors from Intel were convincing arguments in the brochures of Escom, Vobis and Co. Even today, the Company still has a certain appeal - even among Generation Z representatives. Nevertheless, Intel's processors are no longer considered the leaders; AMD has overtaken the Company. But results in performance comparisons by trade magazines are not so decisive for success in the stock market.
More important, on the other hand, is the strategic shift that Intel made some time ago: In the future, it wants to manufacture chips for other companies. That should reduce unit costs and guarantee Intel sales independent of its products. Some time ago, the Company also parted with McAfee and again focused on its core business. Intel has come through a tricky phase. Those who restructure earlier make sales again faster. The latest figures were already good. Intel offers a solid dividend and is well-positioned to quickly jump on moving trains, even with new trends.
BrainChip: Innovator is cheap again
BrainChip could prove to be one such moving train. With its Akida chip, the Company offers an extremely low-power and high-performance model based on the human brain. BrainChip is considered the first commercial manufacturer of neuromorphic AI chips and cooperates with Mercedes, among others. Tests have shown that BrainChip's solutions are suitable for significantly improving voice control in new Mercedes models. In addition to Mercedes, BrainChip is cooperating with chip legend ARM and is part of their partner program to further advance AI solutions.
The latter cooperation, in particular, has hardly been noticed by the market. Industry insiders have regarded ARM as a company with highly efficient chip technology for decades. Among others, Intel is also a licensee of ARM. The Company is also aiming for an IPO in the current market environment and expects robust growth, especially in chips for the automotive industry. The IPO gives hope to a shaken industry. In addition, ARM could also act as a buyer - after all, the funds from the IPO want to be well invested. After a significant correction to the penny stock level, investors should not let BrainChip out of their sight. A lot can still happen here. However, the stock is still a hot potato.
NVIDIA: Gaming and Metaverse as growth drivers
The NVIDIA share has also become significantly cheaper in recent months. The professionals for graphics processors score with popular products. Anyone who has also taken a look at the prices for graphics cards will see that they are now usually the most expensive component in PC systems. Therefore, NVIDIA also profits particularly strongly from the gaming industry. In the last fiscal year, NVIDIA made a whopping USD 12.4 billion in sales in this sector alone. Given future trends such as the metaverse, in which avatars and graphics play an important role, NVIDIA could continue to grow in the future. The Company is a top dog. Accordingly, the stock is stable (and dull) but still has potential.
The chip industry offers growth potential regardless of the development on the stock market. However, investors have to decide how they want to profit from this. Large companies, such as Intel and NVIDIA, offer a solid market position and the necessary war chest to buy new technologies if necessary. Innovation leaders, such as BrainChip, could be takeover targets in the medium term and attract the attention of the chip and automotive industries.
Conflict of interest
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