BMO's Harsh Kumar Backs Nvidia, AMD as AI Chip Market Targets $1.6 Trillion
Updated
Updated · Yahoo Finance · Aug 24
BMO's Harsh Kumar Backs Nvidia, AMD as AI Chip Market Targets $1.6 Trillion
3 articles · Updated · Yahoo Finance · Aug 24
Summary
Harsh Kumar, ranked No. 5 among more than 10,000 Wall Street analysts, said investors should still buy Nvidia and AMD despite the sector’s huge run-up.
Kumar argued AI chip demand remains strong as data-center buildouts, hyperscaler spending and AI lab capex stay elevated in what he called the early innings of the cycle.
He said those forces could push the semiconductor industry to $1.6 trillion this year, supported by AI accelerator and memory demand and 6,050% growth in token demand.
Nvidia remains the dominant AI-chip player with a $5.2 trillion market value, while AMD is positioned as its closest rival for AI accelerator spending.
The call suggests Kumar sees further upside in AI semiconductors even after Nvidia shares have surged 885% over the past five years.