Prediction: This Artificial Intelligence (AI) Semiconductor Stock Will Soar After May 28

Core Insights - The AI sector has seen significant growth, with the S&P 500 and Nasdaq Composite achieving total returns of 58% and 87% respectively between 2023 and 2024, largely driven by the AI revolution [1][2]. Group 1: AI Infrastructure Investment - Major companies like Microsoft, Amazon, Alphabet, Meta Platforms, and Advanced Micro Devices (AMD) are heavily investing in AI infrastructure, with a combined capex forecast of $260 billion for the year [4][6]. - Microsoft’s Azure cloud business reported a 35% year-over-year revenue growth, while Alphabet and Amazon's cloud businesses grew by 28% and 17% respectively, supporting their infrastructure budgets [6]. - Meta Platforms increased its capex from $28.1 billion in 2023 to a projected range of $64 billion to $72 billion for 2025, indicating strong commitment to AI projects [6]. Group 2: Nvidia's Market Position - Nvidia is expected to see a surge in its stock price following its upcoming Q1 earnings report on May 28, despite a recent decline of about 9% since its Q2 2024 earnings [3][10]. - Analysts predict Nvidia's revenue and earnings will nearly double over the next two years, positioning the company to dominate the AI infrastructure market [15]. - The overall sentiment in the market suggests that Nvidia's stock performance has been more influenced by macroeconomic factors than by its business fundamentals [11][12].