Market Movers: 3 Stocks Destined to Dominate the Next Decade

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Opportunities are abundant in technology. Especially in the semiconductor sector, they are more brilliant than ever. Three giants of ingenuity stand on the brink of unprecedented expansion. Given the spike in demand for processing power and artificial intelligence (AI)-driven solutions, there is much room for growth.

The first one’s remarkable revenue growth, driven by its data center business, exemplifies this industry’s enormous potential. The need for high-performance computing solutions is growing as the globe shifts to data-driven decision-making and AI integration across industries. It is creating opportunities for businesses that can provide sharp technology.

For the second, the impressive rise in the data center market highlights the changing competitive landscape. With developments in big data analytics, cloud computing and machine learning, the company’s sharp solutions aim to meet the growing demands of a data-driven society.

Finally, the third one continues to develop steadily despite market complexity, emphasizing the timeless value of basic technology. Notwithstanding challenges, the company’s strategic investments and emphasis on key business areas position it as a cornerstone of stability in a cutthroat market. 

Nvidia (NVDA)

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Nvidia‘s (NASDAQ:NVDA) top-line has witnessed extraordinary expansion, with revenue during its fiscal fourth quarter, reaching $22.1 billion. This is up 22% from the previous quarter and a massive 265% year-over-year (YoY) gain. This rapid growth trajectory highlights Nvidia’s solid market position and capacity to edge into new possibilities in the AI and computing industries.

Moreover, Nvidia’s data center business expanded rapidly and was mainly responsible for the company’s revenue increase. Revenue from data centers hit $18.4 billion, up a startling 409% YoY and 27% sequentially. Nvidia’s position in various areas, including gaming, pro visualization, automotive and healthcare, drives the company’s revenue growth. Each business division adds to the organization’s total income, supporting and stabilizing its growth trajectory.

Finally, Nvidia’s data center revenue growth continued to be robust in all other markets despite obstacles in the Chinese market brought on by government export control measures. In summary, sovereign AI projects outside of China and the U.S. are receiving more demand for Nvidia’s products. 

Advanced Micro Devices (AMD)

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Advanced Micro Devices (NASDAQ:AMD) data center division sales are up 80% YoY, hitting a record $2.3 billion in Q1 2024. Not surprisingly, there is solid demand for AMD’s data center products, especially its Instinct MI300X GPUs and 4th Gen EPYC CPUs.

Moreover, the significant expansion results from AMD’s effective market share gain and penetration in the data center market. This has established the business as a solid rival to major players in the sector. Moreover, the $2.3 billion sales amount highlights the noteworthy contribution of the data center division to AMD’s total financial outcome.

Additionally, the data center segment’s operating income surged to $541 million during the same time last year, a stunning leap from $148 million. Furthermore, operational income increased from 11% to 23% of revenue in the preceding year. The significant increase in operating income indicates AMD’s enhanced profitability and operational edge in the data center business.

Overall, despite large expenditures on marketing and research to capitalize on AI’s potential, AMD raised operational income by more than threefold. 

Intel (INTC)

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With $12.7 billion in revenue during Q1 2024, Intel (NASDAQ:INTC) outperformed its prior year by 9%. This expansion demonstrates the ability to profit even in a highly competitive industry. The company’s primary source of income, Intel Products, reported $11.9 billion in revenue for Q1, a solid 17% increase YoY. Strong lead in the client business, data center and artificial intelligence divisions was the main driver of this expansion. Thus, Intel’s supremacy in this area is evident from the over 30% YoY increase in the client business alone.

In addition, a 5% YoY gain in Intel’s data center and AI business was driven by higher Xeon average selling prices (ASPs) and more demand from enterprise clients. Even with certain difficulties in markets like Altera and Mobileye (NASDAQ:MBLY), Intel’s total revenue base is still solid and has room to develop across a wide range of product lines.

Finally, Intel aims to lower production costs and increase efficiency through its strategic initiatives. These include investing in cutting-edge technologies like high numerical aperture (NA) extreme ultraviolet lithography. Because of volume changes toward leading production nodes with a competitive cost structure and improved operational efficiency throughout, Intel predicts profit growth beyond 2024.

As of this writing, Yiannis Zourmpanos held long positions in NVDA, AMD and INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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