AI Basket Weekly Special Report based on 1.00 Lot Calculation:
ARTIFICIAL INTELLIGENCE INDUSTRY
- MARKET POTENTIAL: The global A.I market was valued at $136.55 billion in 2022 and is expected to reach a value of $1,811.75 billion by 2030. This represents an increase of over 1,200% in total, or an average annual growth rate of approximately 37%.
SEMICONDUCTER INDUSTRY
- MARKET POTENTIAL: The global semiconductor market was valued at $466.32 billion in 2022 and could reach a value of $908.92 billion by 2030. This is an increase of around 95% in total, or up to around 13.5% each year on average. However, the price could decline.
IMPORTANCE OF SEMICONDUCTORS IN THE AI INDUSTRY
- SEMICONDUCTORS ARE CRITICAL TO THE AI INDUSTRY as they power the hardware needed for AI computations and data processing. Advanced AI systems rely on semiconductor technology for their processors and memory units, enabling faster and more efficient performance. The continuous advancements in semiconductor technology directly enhance AI capabilities, making semiconductors fundamental to the growth and success of AI applications. Understanding the semiconductor market is essential for appreciating the potential and expansion of the AI industry.
|
Company |
Ticker |
Sectors |
|
Taiwan Semiconductors |
#TAIWANSM |
Manufacturing - Foundries |
|
ARM |
#ARM |
Design – IP |
|
Nvidia |
#NVDA |
Design – Fabless Chip |
|
Intel |
#INTEL |
Manufacturing- IDMs |
|
Apple |
#APPLE |
Design – Fabless Non-Chip |
Source: Bloomberg
THE COMPANIES
- TSMC: (61.2% market share in semiconductor fabrication, key supplier to Apple, Nvidia, AMD)
- ARM: (designs for ~30 billion chips, 99% of smartphones)
- NVIDIA: (87% AI processing market share, H100 GPU, 95% of machine learning graphics processors)
- Intel: (78% CPU market share, also produces graphics cards and flash memory)
- Apple: (27% smartphone market share, integrates advanced AI in devices)
STOCK PRICE REACTION: BASED ON FUNDAMENTAL ANALYSIS1
|
Downside potential |
Upside Potential |
|
-4.00% |
+8.50% |
|
Potential Profit/Loss on 1 lot of every stock in the basket2 |
|
|
-$53,422 |
$113,521.75 |
|
-€49,361.81 |
€104,893.94 |
|
-£41,988.14 |
£89,225.02 |
|
-C$73,086.20 |
C$155,307.63 |
Data Source on Stock Returns and Volatility: Bloomberg
TARGET LEVELS: SUPPORT AND RESISTANCE
|
Company |
Support |
Current Price |
Resistance |
|
Taiwan Semiconductors |
$155 |
162 |
$175 |
|
ARM |
$111 |
116 |
$127 |
|
Nvidia |
$978 |
1,007 |
$1,100 |
|
Intel |
$30 |
31.5 |
$34 |
|
Apple |
$183 |
190.5 |
$205 |
Note: Support and Resistance Levels have been calculated by using upside and downside potential figures.
Please note that past performance does not guarantee future performance.
1-Calculation Downside/Upside Potential: The sum of potential gains/losses if the stocks reach the given resistance/support levels, respectively.
2- Profit/Loss Calculation (**): Based on 1 lot (*) on each of the five stocks (5 lots). Range: based on the statistical analysis.
* Intel, NVIDIA and ARM, 1.00 lot is equivalent to 1000 units. Apple: 1.00 lot is equivalent to 100 units.
** Calculations for exchange rate used as of 07:15 (GMT+1) 23/05/2024.
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