After transitioning from mainframes to PCs to servers to Cloud-based data centers, computing is about to make another transition: Artificial intelligence (AI) is the next computing wave. As demand for chips from the PC and smartphone industry subsides, demand for high-end processors to power AI-based platforms such as voice interfaces, robots, augmented reality, driverless cars, smart homes and advanced cybersecurity systems are expected to rise.
This new semiconductor industry is led by Microsoft, Google, Apple and Huawei. They increasingly tell their merchant suppliers what chips to make or do it better themselves, building custom, algorithmic chips and creating their own AI supercomputers in the Cloud.
In this report, we looks at the changing direction of the semiconductor sector as it prepares itself for a world set to be dominated by artificial intelligence.
- This report is part of the ecosystem of thematic investment research reports, supported by the “thematic engine”.
- About the Thematic Research Ecosystem
- The author has developed a unique thematic methodology for valuing technology, media and telecom companies based on their relative strength in the big investment themes that are impacting their industry. Whilst most investment research is underpinned by backwards looking company valuation models, the author’s thematic methodology identifies which companies are best placed to succeed in a future filled with multiple disruptive threats. To do this, the author tracks the performance of the top 600 technology, media and telecom stocks against the 50 most important themes driving their earnings, generating 30,000 thematic scores. The algorithms in the author’s “thematic engine” help to clearly identify the winners and losers within the TMT sector. The 600 TMT stocks are categorised into 18 sectors. Each sector scorecard has a thematic screen, a risk screen and a valuation screen. The thematic research ecosystem has a three-tiered reporting structure: single theme, multi-theme and sector scorecard. This report is a Single Theme report, offering in-depth research into a specific theme. It identifies winners and losers based on technology leadership, market position and other factors.
- The thematic investment research product, supported by the thematic engine, is aimed at senior (C-Suite) executives in the corporate world as well as institutional investors.
- Corporations: Helps CEOs in all industries understand the disruptive threats to their competitive landscape
- Investors: Helps fund managers focus their time on the most interesting investment opportunities in global TMT.
- The unique differentiator, compared to all rival thematic research houses, is that the thematic engine has a proven track record of predicting winners and losers.
Trends in AI chips
Wider trends across the chip sector
HOW THE CHIP INDUSTRY COULD ADAPT IN THE ERA OF AI
AI computing opens up a new growth market for chips
The two critical components of any successful AI engine
Component: AI chips
Component: Neural nets
Microsoft is the unexpected game changer
Which players are big in which markets?
Mergers and acquisitions
SEMICONDUCTOR SECTOR SCORECARD
Who’s who in scorecard
APPENDIX: “THEMATIC” RESEARCH METHODOLOGY
- Analog Devices
- ASML Holding
- Cirrus Logic
- Imagination Tech
- Linear Technology
- Monolithic Power Systems
- Nanya Tech
- On Semiconductor
- Realtek Semiconductor
- Samsung Electronics
- Silicon Labs
- Silicon Motion
- SK Hynix
- Texas Instruments