With the recent decline in the stock market, many attractive investment opportunities appeared in the technology sector.
Invidia (NVIDIA)
If there is one arrow that currently attracts the attention of the market, it is undoubtedly Nasdaq: NVDA, and this leading company in the semiconductor industry has become one of the largest companies globally, and it is an essential indicator of market morale, especially with regard to artificial intelligence technologies.
Although artificial intelligence is still in its early stages, it has already started changing the world around us, and Anfidia is the main driver of this transformation, as its GPUs (GPUS) units are the main source of computing capabilities on which artificial intelligence models depend on training and conclusion, and at the same time, investments in artificial intelligence infrastructure increases at an accelerated pace, and this can be observed in budgets Capions of the largest cloud computing companies, in addition to companies that invest in developing advanced artificial intelligence models.
Invidia estimates that spending on artificial intelligence databases may exceed a trillion dollars by 2028 which is more than twice the current levels, and with its continuation in the leadership of developing devices and software associated with artificial intelligence, the company remains the largest beneficiaries of this investment boom, and in an investment point of view the stock still seems attractive as it is traded with a profitable double of 26 Based on the estimates of analysts for this year, the rate of price to growth (PEG) is less than 0.5, which is an indication that the arrow is residing in less than its true value.
ASML (ASML)
While Invidia has the dominance of the graphics processing units market (NASDAQ: ASML) has a almost complete monopoly of equipment used in the manufacture of advanced chips such as graphics processing units, and the company is undisputed leading in the maximum ultraviolet lighting technology (EUV), which is the technique that allows the manufacture of advanced electronic slides.
The ASML has already launched the next generation of its technique known as the high numerical EUV technology (High-Na Euv), and this technology will enable the printing of smaller features on the slides and increased the density of transistors, which significantly enhances the efficiency of chips.
But this technology comes at a high cost, as the price of the regular EUV machine is about 200 million dollars, while the cost of the new generation is 370 million dollars, and although the company has already managed to sell some of these advanced machines, the major manufacturers of chips are cautious due to high costs, which means that the real impact of this technology will appear in the long term.
On the other hand, major chips manufacturers such as Taiwan for the semiconductor industry (TSMC) and Intel are expanding their productive capacity to keep pace with the increasing demand for chips, and TSMC plans to create new factories around the world with investments of $ 165 billion in the United States during the coming years, while Intel intends to invest $ 100 billion in enhancing its manufacturing capabilities in the United States during the next five years, and all these factories, all these factories The new will need ASML equipment.
Although the stock is traded with a 29.5 profitable multiplier based on the estimates of this year, this number decreases to 24 based on the expectations of 2026, which makes the stock an attractive choice for investors looking for a long -term investment in the semiconductor sector.
Taiwan for the semiconductor industry (TSMC)
Another powerful company in the semiconductor supply chain that can be invested in it is Taiwan Seiwan Semiconductor Manufacturing – TSMC, and the company is the largest chips factory, as she produces chips for the largest semiconductor designers in the world, such as Invidia, and is also one of the main customers of ASML.
Although manufacturing with demand may not seem an exciting field in some sectors, semiconductor manufacturing requires tremendous technical experience, TSMC has managed to outperform their competitors through continuous innovation and reduce transistors sizes on chips, which increases treatment speed and reduces energy consumption.
Thanks to this technological progress, TSMC acquires more than two-thirds of the market share in the Pure-Play Foundries, which is the leader in the production of advanced chips, and thus the company has become an indispensable strategic partner for major semiconductor companies such as Invidia and Apple.
The decisive location in the supply chain gives it a strong pricing power, which helped it expand the total profit margin at a faster rate than the growth of revenue, and with increasing investment in artificial intelligence the markets needs more advanced chips to run artificial intelligence models, which makes TSMC one of the largest beneficiaries of this trend, and despite all these advantages, TSMC shares are still evaluated at a price Low compared to his expected growth, as it is traded with a 19.5 -profit multiplier and PEG is less than 0.7, making it a strong investment choice.
