Nvidia is the biggest winner from the AI boom. Are Qualcomm and TSMC next?
As AI tech flows from enterprise to consumers, Australian fundies are betting these chipmakers will prosper.
After rocketing 2700% over the past five years, many are making the assumption that Nvidia’s days of exponential share price growth are over. But that doesn’t mean the AI party has to end.
Several Australian fund managers are betting Qualcomm and TSMC will be among the next companies to surf the AI tidal wave as adoption of the much-hyped technology flows from data centres to households.
"We anticipate new demand from consumers who want an AI-enabled PC or AI-enabled phone," said Munro Partners' portfolio manager Kieran Moore, "leading to a potential acceleration in semiconductor demand."
"We have increased our investment in TSMC over the last six months because we have seen an acceleration in the company's earnings estimates," Moore said. "Our maths shows that Qualcomm’s earnings per share can move towards USD20, which is up from USD8.43 reported in the 2023 fiscal year," he added.
