Close menu

September 7th, 2021 | 13:24 CEST

Nvidia, AMD, BrainChip, Infineon - Scarcity: These chip stocks are exploding!

  • Technology
Photo credits:

The global chip markets remain tight, and a recent PwC study predicts that the global semiconductor market will continue to experience solid growth years. The authors forecast that chip sales will rise to USD 575 billion as early as 2022. Starting from the USD 481 billion in the previous record year 2018, this would correspond to a compound annual growth rate (CAGR) of 4.6% - not even the pandemic slowed this increase noticeably. In Europe, the automotive industry will become the primary sales market for chip manufacturers. A new growth driver is semiconductors to support artificial intelligence (AI) in autonomous mobility. We present a few industry representatives.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: NVIDIA CORP. DL-_001 | US67066G1040 , ADVANCED MIC.DEV. DL-_01 | US0079031078 , BRAINCHIP HOLDINGS LTD | AU000000BRN8 , INFINEON TECH.AG NA O.N. | DE0006231004

Table of contents:

    Nvidia - The clear number 1 in graphics chips

    Thanks to robust demand for its powerful graphics cards, shares of Nvidia have nearly quadrupled since early 2020. They are needed in a wide range of applications where processing power and detail matter. Specific application areas include PCs as well as data centers, mining hubs and the automotive industry. The chipmaker's dominant position in the lucrative video game market is one of the main reasons for the enormous sales growth in recent quarters. The segment is now responsible for 47% of total sales and is therefore of paramount importance to the Company. With a unique market position, the upward trend should continue to grow dynamically here.

    AMD - Losing market share to the market leader

    Nvidia's closest competitor, Advanced Micro Devices (AMD), is struggling to make headway in this multi-billion dollar sector, as the latest market analysis from Jon Peddie Research shows. It says that Nvidia's share of the discrete graphics processor (GPU) market was 83% in the second quarter of 2021, with AMD accounting for the rest. That is an increase of one percentage point each compared to the previous two quarters. As a result, Nvidia successively takes market shares from its competitor AMD. There is almost a monopoly position developing.

    Meanwhile, AMD tries to equip its new desktop CPUs with an integrated graphics unit. That would be a novelty for the well-known Ryzen series because only the separate APU models with the suffix "G" previously could access this feature. For users of the processors, this would be a nice addition. This way, they do not have to rely on a dedicated graphics card to use their PC - that would be especially worthwhile for office use. In a celebratory mood, AMD stock owners are probably assuming a special boom for their Company, as AMD's market value has been able to swing up 50% since then.

    BrainChip Holdings - Almost like the human brain

    BrainChip Holdings is an Australian semiconductor company that manufactures a revolutionary neuromorphic processor called "Akida". This chip is the first fully digital computer chip that functions in the same way as the human brain, i.e. it processes so-called spikes instead of conventional computer data.

    The Akida processor can also learn on its own during use, as it improves the overall performance of artificial intelligence systems by significantly reducing latency and power consumption. Because Akida does most of its processing on-chip rather than in data centers, it does not require a constant Internet connection. As a result, it takes so-called edge computing to a whole new level.

    The new chip with AI capabilities represents a wide range of application areas, including control of autonomous vehicles, IoT devices and drones. Other areas of application can be found in robotics, medical diagnostics and security. The first Akida chips were manufactured by TSMC in Taiwan and delivered in August 2021. Once commercially launched, management expects BrainChip to attract some of the big names in the semiconductor industry and end-users and electronics companies alike.

    BRN stock is based in Australia and is also actively traded in Germany. Its market capitalization is currently around EUR 500 million - not too much for a next-generation chipmaker. Research house Pitt Street sees a price target of AUD 1.45, which represents a potential of almost 200% today.

    Infineon - Still in the fast lane

    Infineon (IFX) is the largest chip manufacturer from Germany. For the current fiscal year, the Company is showing signs of rapid growth, even though it should expand at a slower pace again in the future. In the media, the shortage of computer chips has been discussed intensively since the beginning of the year, and the megatrend of e-mobility is playing right into IFX's hands. According to the last quarterly report, Infineon benefited from the strongly rising prices for semiconductor products. According to the report, IFX expanded its revenues from EUR 2.17 billion to EUR 2.72 billion compared to the same period last year, which corresponds to an increase of 25%. At the same time, the Company moved back into the profit zone with EUR 245 million, after posting a loss of EUR 128 million 12 months ago.

    The Automotive division performed particularly strongly, expanding its revenues by 49% to EUR 1.21 billion within the year. Accordingly, Infineon's products are currently in exceptionally high demand in this sector. Global corporations such as Bosch, Continental and Denso are placing regular orders as more and more high-tech electronic features are installed in vehicles. Infineon's chart is pointing incessantly upward, with a new high of EUR 37.4 reached just this week.

    Scarcity moves chipmakers' profits. After the supply backlog has been worked off, the growth momentum is likely to flatten out somewhat, but the megatrend of e-mobility will nevertheless provide further impetus. Producers such as Nvidia, AMD and Infineon are already well-positioned, and the Australian Company BrainChip is just coming onto the market with a new technology - which makes things exciting!

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by Stefan Feulner on March 21st, 2023 | 08:37 CET

    Varta, Aspermont, Rheinmetall - Full speed ahead for expansion

    • Innovations
    • Technology
    • Defense

    Changing conditions in terms of broken supply chains, high raw material prices and an uncertain geopolitical situation have put many companies in dire straits since the Corona pandemic, leading to a collapse in sales and liquidity bottlenecks. Nevertheless, few managed to adapt their business models to emerge stronger from the crisis.


    Commented by Armin Schulz on March 20th, 2023 | 08:45 CET

    Meta Materials and Palantir for the future, what is Commerzbank doing?

    • metamaterials
    • Technology
    • Innovations

    The financial industry is shaking after the collapse of Silicon Valley Bank (SVB) and the problems of Credit Suisse. The rapid rise in interest rates caught banks cold that had bet on long government bonds with low interest rates. SVB had to report losses due to the falling prices of these bonds. As a result, more and more customers withdrew their funds, and the bank was already in trouble, even though the government bonds were supposedly safe. Now the FED is likely to reconsider its interest rate policy. Some market participants even expect the interest rate to be lowered. This plays into the cards of growth companies, which previously suffered from the hikes. We, therefore, highlight Meta Materials and Palantir, two growth companies with innovative technologies, and conclude with a look at Commerzbank.


    Commented by André Will-Laudien on March 20th, 2023 | 08:30 CET

    The big battery question of 2023: BASF, Altech Advanced Materials, Volkswagen - Who is the fastest?

    • Electromobility
    • Innovations
    • Technology

    In recent months it has become clear to investors that the global economy will have to contend with sharp price increases after the pandemic. The greatest inflationary pressure comes from scarce raw materials, especially for high-tech industrial goods. That is because the trend toward climate protection is forcing the industry to make its manufacturing processes more resource-efficient. As a result, this requires major investment in new energy plants and storage systems. Electromobility is still the smaller problem here because how will humanity secure green energy supplies around the globe? The energy hunger of the emerging nations already exceeds the new demand in the industrialized nations by a factor of six. Sophisticated ideas are needed!