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Nvidia’s stock has risen 280% over the past year, thanks to soaring sales of chips that power artificial intelligence applications. But Silicon Valley companies aren’t the only ones participating in AI-powered gatherings. Investors are also pouring money into companies buying these chips amid hopes that AI will help improve productivity and profits. CNBC Pro screened companies that are Nvidia customers and whose total revenue is highly correlated to the semiconductor giant. In other words, those companies’ stock prices tend to rise and fall in tandem with his Nvidia stock price. Supermicro, Tokyo Electron Devices, Metaplatforms, Tata Motors and Mitsui & Co. are among the stocks that have seen the biggest gains over the past year. The company’s stock price movement correlates with his Nvidia stock price 93% to 98% of the time, according to FactSet. According to FactSet, the table above also shows the strength of the financial relationship between AI chip buyers and Nvidia. For example, Microsoft holds the first place in the relationship ranking because it is Nvidia’s biggest customer for his AI chips. TSMC ranks No. 2 because it is Nvidia’s near-exclusive contract chip maker. Meta While the factors driving each stock’s rise may vary, Meta revealed earlier this year that it was spending billions of dollars on popular Nvidia computer chips that are central to artificial intelligence research and projects. The owner of Facebook and Instagram needs these rugged chips to advance research into artificial general intelligence (AGI), which CEO Mark Zuckerberg has described as the company’s “long-term vision.” There is. Like Super Micro, the computer manufacturer that makes his servers also directly benefits from using Nvidia’s AI chips in its products. Paul Meeks, a tech investor and co-chief investment officer at Harvest Portfolio Management, told CNBC Pro that Supermicro is his favorite alternative AI stock. In the past 12 months the stock price has increased more than 1000%. “Super Micro uses his Nvidia chips in their servers because they manufacture customized servers used by AI customers. [Super Micro] sells servers to Microsoft and others, which then put them in data centers. “Supermicro has done a pretty good job of shifting its focus to AI customers,” Meeks said. Mitsui & Co., a listed subsidiary of Tokyo Electron, Japan’s largest chip-making equipment maker, has seen its share price rise more than 180% in the past 12 months as it eases laws that increase the risk of copyright infringement in developed markets. . Japanese conglomerate Mitsui & Co. is building Tokyo-1, a supercomputer designed to power generative AI for the pharmaceutical industry. This supercomputer utilizes many of Nvidia’s most powerful GPUs. The stock price is up almost 60% in the past 12 months. CNBC’s Jonathan Vanian and Weizhen Tan contributed reporting.
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