The AI Chip War: A Look at the Unexpected Winners of the Next 5 Years

Core Insights - The AI industry is evolving, presenting new opportunities for various players beyond Nvidia, which has dominated the market thus far [2][3]. Company Summaries Qualcomm - Qualcomm is positioned to provide affordable AI-capable mobile processors, as the cost of such technology decreases over time [6][8]. - The Snapdragon® 8 Gen 3 chipset, launched in October 2023, is the first mobile platform designed specifically for generative AI, with several smartphone manufacturers already adopting it [7][8]. - Qualcomm's high-performance mobile processors are expected to gain significant traction in the mid-priced segment of the growing mobile/onboard AI processor market [9]. Marvell Technology - Marvell Technology focuses on enhancing data center hardware, which is crucial for the next generation of AI applications, including processors and other technologies that improve data center performance [10][11]. - The global AI data center market is projected to grow at an average annual rate of nearly 29% through 2029, indicating substantial growth potential for Marvell [12]. - Analysts largely view Marvell's stock as a strong buy, with a consensus target price of $91.28, approximately 30% above its current price [12]. NXP Semiconductors - NXP Semiconductors is targeting the practical application of AI in real-world scenarios, such as autonomous vehicles and smart devices, rather than focusing on data centers [14][15]. - The company is expected to see revenue growth from $12.36 billion this year to nearly $15 billion by 2027, with earnings anticipated to grow even faster [16]. - NXP's stock is considered attractive, trading at about 16 times next year's expected earnings of $14.07 per share, and it offers a forward-looking yield of just under 1.8% [17].