The Intel-Nvidia agreement's primary beneficiary?
In a move that could significantly reshape the semiconductor industry, Nvidia has announced a $5 billion investment in Intel and an expanded partnership. This strategic alliance is expected to make Intel more competitive in data centers and PCs, potentially benefiting both companies in their pursuit of AI and data center computing.
The investment could also boost Intel's capabilities, allowing the company to invest more in equipment. This increased investment could potentially increase demand for ASML's lithography machines, making ASML, the most valuable company in Europe, an even more advantageous player in the industry's changing landscape.
ASML's stock has already picked up momentum in recent days, with its price rising around 180 Euro or 30 percent since its September low. Analyst Didier Scemama remains very optimistic about ASML's long-term prospects, raising his price target from $833 to $1,082. He sees more than 15 percent upside potential for ASML's stock, and maintains a buy recommendation for the company.
Bank of America expects growing demand for semiconductor manufacturing machines due to the Nvidia-Intel deal, with several new chip production facilities planned in the US expected to continue the trend for ASML's machines in the coming years. DER AKTIONÄR also expects significant revenue growth for ASML to resume in 2027, with potential growth of more than 20 percent.
The potential increased competition from a more competitive Intel is seen as positive for the semiconductor industry. The deal could make Intel more competitive in data centers and PCs, potentially benefiting ASML. This increased competition could drive innovation and growth across the industry, as companies strive to keep pace with the evolving technological landscape.
The deal between Intel and Nvidia is expected to lead to lasting changes in the chip industry. With Nvidia's GPUs integrated into Intel's processors for AI workloads, both companies are expected to strengthen their positions against competitors like AMD. Didier Scemama expects the partnership to unlock synergies and drive significant growth, making this deal a game-changer for the semiconductor industry.
Read also:
- "Eco-Scam": Unveiling the Truth about Electric Vehicles
- Development of Restaurant Apps: Expenses and Essential Elements
- Time is of the essence
- European transportation's sustainability and competitiveness rely on a "green industrial agreement" that serves the interests of both corporations and residents, as discussed in an Editorial from August 2024.
