In today’s digitally dependent world, it is surprising that semiconductor businesses can’t capture the complete PC and mobile markets despite seizing nearly 20 per cent of their total value.

With the increasing use of AI, semiconductor businesses are given an opportunity to get more value from the technology stocks. After all, technology hardware stocks require AI capabilities, especially in its memory and sensor fields.

Moreover, plenty of AI applications require specialised end-to-end solutions. This will give ample opportunities for the smaller companies that manufacture niche products to capitalise by addressing customer pain points related to storage, memory, and specialised computing needs. In fact, reports suggest that AI-related semiconductor businesses are likely to account for nearly 20 per cent of all its demand and bring in $67 billion to the industry.

No wonder there has been a rise in new chip startups and venture capital funding, with Deloitte Global predicting venture capital firms investing more than $6 billion in semiconductor companies in 2022.

So even as AI rules the digital world, it is becoming even clear that software is great, but hardware is the true enabler. As per Grand View Research, the global AI market is forecasted to hit $1.81 trillion by 2030 at a CAGR of 37.3 per cent from 2023 to 2030, and hardware is its foundation.

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