[News Terms] Pang, Following Magnificent 7, Now the Era of ‘AI 5’

NVIDIA, Microsoft (MS), AMD, TSMC, Broadcom. These are the five major tech stocks leading the record-breaking rise in the U.S. stock market this year, collectively known as the ‘AI 5.’ This term, coined by Glen Katcher, a corporate analyst at Light Street Capital, refers to the five leading companies that will drive the future artificial intelligence (AI) era.

[Image source=EPA Yonhap News]

Among them, the flagship is NVIDIA. Starting the year at $481.68 per share, NVIDIA’s stock price has soared over 50% to $726.13 as of the closing price on February 16. It reached an all-time high closing price of $739.00 on February 14 (local time) and intraday peaked at $746.11, approaching the $750 mark. The surge in stock price is driven by the explosive increase in demand for AI semiconductors. GPUs (graphics processing units) are essential for AI development, and NVIDIA holds more than 90% of the global GPU market.

Microsoft (MS), which has been rallying alongside NVIDIA, also surpassed a market capitalization of $3 trillion for the first time this year, becoming the second company ever after Apple. The driving force behind the stock price increase is undoubtedly AI. MS is the major shareholder of OpenAI, which sparked the generative AI craze with ChatGPT, and is recognized as a leader in global AI technology trends.

AMD, TSMC, and Broadcom are new companies that were not included in the ‘FANG’ (Facebook, Apple, Amazon, Netflix, Google) or the ‘Magnificent 7’ (Google, Apple, Meta, Amazon, NVIDIA, Tesla, MS) that led the New York stock market rally in recent years. Among them, AMD is a semiconductor company considered a competitor to NVIDIA in the GPU market, TSMC is a Taiwanese foundry (semiconductor contract manufacturer) producing AI semiconductors designed by fabless companies such as NVIDIA, Intel, and Apple. Broadcom, listed on NASDAQ, is a semiconductor and networking company that has risen about 15% this year.

This content was produced with the assistance of AI translation services.