Core Viewpoint - The investment bank Raymond believes that semiconductor stocks, including Nvidia (NVDA.US), AMD (AMD), and Intel (INTC.US), have significant upside potential, with a focus on the dominance of artificial intelligence in the market [1][2] Semiconductor Industry Ratings - Raymond has reinstated its ratings for the semiconductor industry, giving "Outperform" ratings to AMD and Broadcom (AVGO.US), "Market Perform" ratings to ARM (ARM.US), Astera Labs (ALAB.US), and Intel, and "Strong Buy" ratings to Marvell Technology (MRVL.US) and Nvidia [1] - The analysts emphasize that the AI theme has become dominant, overshadowing trading strategies based on semiconductor market cycles [1] Nvidia's Position - Nvidia is highlighted as a leader in the AI sector and is considered a "core holding" for investors due to its strong competitive advantages and mature software stack developed over a decade [1] - The company benefits from robust community support and a full-stack system approach [1] Marvell Technology Insights - Marvell Technology faces skepticism as a custom chip supplier, but analysts believe it has the necessary advantages through its dedicated integrated circuit business and optical division [1] - Currently, data center products account for approximately 75% of sales, with expectations for continued growth in the custom integrated circuit and data center optical digital signal processor markets [1] - Management aims to capture about 20% of the market share in the data center custom integrated circuit sector by 2028, valued at over $8 billion [1] Broadcom's Market Potential - Broadcom is expected to expand its market share in the AI sector as large enterprises seek customized alternatives to general-purpose processors [1] AMD's Competitive Edge - AMD is seen as a strong competitor to Nvidia in the graphics processing market, with expectations for growth in accelerators and AI rack systems [2] - The company is projected to produce 1.9 million MI350 chips and 9.15 million MI450 chips by fiscal year 2027, indicating potential market share expansion in servers and personal computers [2] ARM's Strategic Focus - ARM is concentrating on expanding into the data center sector and exploring AI-related opportunities, including in-house chip development [2] - Data center sales have approached 20% of total sales over the past two years, increasing the company's engagement with hyperscale operators [2] Astera Labs' Market Position - Astera Labs is recognized as a leading supplier in the retimer market, focusing on high-speed connectivity services with its PCIe5 and PCIe6 products [2] - The significant increase in computational intensity has driven demand for the company's core high-speed interconnect technology [2] Intel's Stock Recovery - Intel's stock has seen a notable recovery due to various events, including investments from the U.S. government, Nvidia, and SoftBank, although its fundamentals still require improvement [2] - The stock is trading significantly above historical averages, with overall assessments indicating its fair value is close to the current price [2]

Core Insights - AMD's Q2 revenue reached $7.685 billion, a 32% year-over-year increase, setting a quarterly record and exceeding analyst expectations [2] - Due to U.S. export restrictions, sales of the MI308 chip to China were limited, resulting in a 30% year-over-year decline in EPS and a drop in gross margin to 43% [2] - Data center revenue grew 14% year-over-year, with a slowdown attributed to MI308 export limitations [2] - Client business (PC chips) showed strong performance with a 67% year-over-year revenue increase, marking three consecutive quarters of record highs [2] - Gaming business reversed its declining trend, achieving a 73% year-over-year revenue growth [2] - AMD's Q3 revenue guidance midpoint is $8.7 billion, a 27.9% year-over-year increase, indicating a slowdown but still above analyst expectations [2] - Q3 gross margin is expected to rebound to 54% [2] - AMD has commenced early production of the new MI350 chip and plans to launch the MI400 series next year [2]

Core Viewpoint - AMD's CEO Lisa Su emphasizes that the cost increase of American-made chips is justified by the value of supply chain resilience, leading to a significant market response and a 4% stock price increase [1][3]. Group 1: Cost and Supply Chain Dynamics - The market's reaction to Su's comments reflects a revaluation of "nearshore manufacturing" as a new valuation anchor for tech stocks, with AMD securing scarce production capacity ahead of potential tariff increases [3]. - AMD's strategy includes a 10% allocation of high-end production capacity to the U.S., which is seen as a strategic move to create a natural moat against global trade tensions [3][4]. Group 2: Competitive Positioning and Technology - AMD is gaining a competitive edge in the 2nm technology space with the delivery of the first N2 process Zen 6 chip, indicating that U.S. manufacturing capabilities are improving [3]. - The company is also focusing on local partnerships in China, forming an AI application alliance with over 100 partners, which is expected to grow to 170 by year-end [4][5]. Group 3: Strategic Commitments and Market Resilience - AMD has made four key commitments to the Chinese market, including a dedicated R&D team and partnerships with over 100 cloud instances and universities, which serve as a counterbalance to potential U.S. tariffs [5]. - The company's historical ability to turn challenges into opportunities is highlighted by its significant stock price recovery and revenue growth despite facing export losses [5][6]. Group 4: Future Technology Developments - AMD is preparing for future advancements with the MI350 chip, which boasts a 35x increase in inference performance while being 30% cheaper than NVIDIA's comparable products [6]. - The company is also developing the Helios super rack for large-scale model training, positioning itself as a key player in the upcoming AI PC market [6]. Group 5: Market Strategy and Investment Outlook - The semiconductor industry is entering a complex phase where short-term cost concerns, mid-term production capacity, and long-term ecosystem development are critical [6]. - AMD's approach to defining value in the context of a 5%-20% cost premium is seen as a strategic move that could reshape pricing power in the semiconductor supply chain [6].

Core Insights - Meta is utilizing AMD's MI350 chips for training and deploying its recommendation engine [1] Company Summary - Meta's executives have confirmed the integration of AMD's MI350 chips into their technology stack [1]

Core Viewpoint - AMD is set to launch the MI350 and MI355 chips, with the MI400 chip expected to be released next year [1] Group 1 - The MI350 and MI355 chips are part of AMD's strategy to enhance its product offerings in the high-performance computing market [1] - The introduction of the MI400 chip next year indicates AMD's commitment to continuous innovation and competitiveness in the semiconductor industry [1]