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Analyst: US chip industry could be worth $5.5trn

The combined market value of the US's top semiconductor firms has surpassed USD 5.5 trillion – making the market the world's third biggest 'economy'.

A report in Business Insider quotes data by Bank of America equity analyst Vivek Arya, which says that the industry beat the milestone yesterday. It attributes the stunning numbers to the surge in demand for artificial intelligence (AI) chips. This has tripled market value in a year, and it makes the US market worth more than every economy in theb world bar the US and China.

Nvidia Corp alone commands more than half of the industry’s overall market value, at USD 3 trillion. Meanwhile 10 other US firms have market caps exceeding USD 100 billion.

US stock valuations ($ million)

  • NVIDIA Corporation $2,955.70
  • Broadcom Inc $650.33 
  • Advanced Micro Devices, Inc $270.33
  • QUALCOMM Incorporated $235.75
  • Applied Materials, Inc $183.52
  • Texas Instruments Incorporated $177.92
  • Micron Technology, Inc.  $143.75
  • Intel Corporation $129.66
  • Lam Research Corporation $125.26
  • Analog Devices, Inc $117.53
  • KLA Corporation $105.07
  • Marvell Technology, Inc. $58.99
  • Microchip Technology Incorporated  $50.01
  • Monolithic Power Systems, Inc. $36.75
  • ON Semiconductor Corporation $31.30

However, Arya advises that there could be a correction thanks to rising interest rates, the upcoming US elections, geopolitical tensions and an end to the AI hype cycle.

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June 13 2024 1:49 pm V22.4.55-2