Semiconductor stocks have soared over the past year amid investor mania for artificial intelligence.
Graphics processing units (GPUs) are the chips that fuel AI. The PHLX Semiconductor Sector index has jumped 54% over the last 12 months.
Nvidia (NVDA) , the 800-pound gorilla that dominates the GPU market for AI, has led that rally. Its shares have tripled over the period, giving it the third highest market capitalization in the country, after No. 1 Microsoft and Apple.
“We are seeing a historic rise in demand for AI, accelerators, led by Nvidia,” Morningstar analysts Brian Colello and Jivyaa Vaidya wrote in a report.
“In recent quarters, Nvidia has reported staggering revenue growth, raised the bar for the next quarter even higher, and then smashed through such rosy forecasts.”
Nvidia and its CEO Jensen Huang have…
