The Bottom Line:
- Generative AI, led by companies like OpenAI and Google, is revolutionizing various industries similar to past tech breakthroughs.
- The real investment potential lies in companies manufacturing essential AI hardware, regardless of which AI dominates the market.
- Nvidia’s GPUs are pivotal for most generative AI applications, positioning related companies for substantial growth.
- Micron Technology, Applied Materials, TSMC, and ASML are key players supporting Nvidia’s dominance in AI hardware.
- The AI hardware market, including high bandwidth memory and semiconductor equipment, is set for exponential growth over the next decade.
The Revolutionary Impact of Generative AI on Various Industries
The Impact of High Bandwidth Memory on AI Infrastructure
Micron Technology plays a significant role in the AI market by producing high bandwidth memory modules for Nvidia’s GPUs. With the rise of generative AI services and data centers, the demand for advanced memory solutions has soared. Micron’s high bandwidth memory technology helps increase data transfer rates and reduce power consumption, making it essential for handling large amounts of data in AI applications.
Applied Materials: Revolutionizing Semiconductor Equipment
Applied Materials, a Silicon Valley company, is at the forefront of semiconductor equipment innovation. Their tools and equipment for chip fabrication have played a crucial role in the development of advanced semiconductor technologies. From epitaxial reactors to chemical mechanical polishing tools, Applied Materials has revolutionized the semiconductor industry, enabling the production of cutting-edge chips with enhanced processing capabilities.
The Growth Potential of Semiconductor Manufacturing
The global semiconductor manufacturing market is poised for significant growth, driven by the increasing demand for advanced chips fueled by generative AI applications. Companies like Nvidia and Micron are facing supply constraints due to the surge in demand for semiconductor components. As the industry continues to evolve, investments in semiconductor manufacturing companies like Micron and Applied Materials hold promising opportunities for investors seeking to capitalize on the AI market surge.
Why AI Hardware Manufacturers Are the Real Investment Opportunity
open ai’s gp40 is taking the World by storm and generative AI is already changing our lives in a big way just like smartphones did and the internet before that and personal computers before that but the real opportunity for investors isn’t about open AI at all it’s about Google actually no not exactly it’s about finding the companies that will win big regardless of which AI ends up on top that’s the best way to get rich without getting lucky your time is valuable so let’s get right into it first things first I’m not here to hold you hostage here’s everything I’m going to talk about in this video Micron Technology which makes the high bandwidth memory modules for nvidia’s gpus Applied Materials and their Innovations in semiconductor equipment tsmc which makes over 90% of the world’s most advanced chips and asml which might just have the biggest Monopoly in the entire AI market now your probably wondering how this list of stocks has anything to do with GPT 40 or Google Gemini so let me explain that first starting with the AI Market itself the global AI Market is expected to almost 12x in size over the next 8 years which is a compound annual growth rate of over 36% between now and 2032 by the way that’s about a three times higher growth rate than the S&P 500’s average annual rate of return of 12% over the last 10 years software and services account for about 75% of the total AI Market opportunity while Hardware makes up the other 25% and since software usually has higher margins everyone is focused on finding the winner between software companies like open Ai and Google but while their presentations couldn’t have been more different I just want to thank the incredible open aai Team Google they actually did have one big thing in common we are fortunate to have a long-standing partnership with Nvidia we are also proud to be one of the first Cloud providers to offer Nvidia Cutting Edge Blackwell gpus thanks to Jensen and the Nvidia team for bringing us the most advanced gpus to make this demo possible today now this isn’t a video about Nvidia but Nvidia is dominating the market for data center gpus with a whopping 92% market share which means almost every generative AI application and service runs on nvidia’s chips today and the market for data center accelerators is expected to more than 5x by 2032 which means demand for these chips is growing at a 24% compound annual growth rate combine that with Nvidia having gross margins north of 75% which is as high as most software companies and it’s not hard to see why Nvidia stock tripled over the last year alone Nvidia is winning big regardless of which AI comes out on top and what all of the companies in this video have in common is being involved in making nvidia’s chips that’s my plan for getting rich without getting lucky let’s start with Micron Technology ticker symbol mu Micron is an American company that makes memory for the entire Computing industry not just Nvidia Micron makes solid state drives Ram modules and flash memory for data centers consumer PCS industrial iot devices Flagship smartphones and even AIO automotive and each of these markets is currently transitioning to more advanced memory for AI applications from generative AI services and data centers to co-pilots on PCS smartphones and wearables all the way to self-driving cars as a result the global market for nextg data storage solutions like nvme solid state drives and mam is expected to more than 6X over the next decade which is a compound annual growth rate of over 22% for the next 10 years but that’s nothing compared to the market for high bandwidth memory which could grow by almost 50x in the next 7 years that’s an insane 68% compound annual growth rate for the rest of this decade now to be fair some of that crazy growth is because High bandwith memory makes up just 5% of all memory deployed today and it’s got a lot of room to grow thanks to the insane demand for generative AI infrastructure which again is dominated by Nvidia today well good thing for for micron that they make the high bandwidth memory for nvidia’s gpus high bandwidth memory works by stacking layers of individual memory chips and connecting them to a single Hub which helps pack more memory into a smaller space the goal is to increase data transfer rates and decrease overall power consumption by lowering the physical distance that the data needs to travel that’s why nvidia’s h200 data center gpus use micron’s high bandwidth memory cubes which use around 30% less power than the competition and just like Nvidia micron’s most advanced hbm Solutions have much more demand than Supply they’re already sold out for 2024 and most of their 2025 inventory has already been bought up as well Micron currently has around a 25% share of the Next Generation memory Market putting them right behind Samsung and SK HX both of which are headquartered in South Korea Micron stock is up by around 50% year to date but we’re still in the very early Innings of the AI war between companies like open aai Microsoft Google and meta platforms and as all of them keep building bigger and faster AI models they’ll need tons of high bandwidth memory and better storage solutions to handle all that data and speaking of data I recently found out that dozens of online data Brokers were selling my personal data and if you’ve been getting more spam phone calls texts or emails lately they might be selling yours too that’s why I decided to join delete me the sponsor of this video delete me is a hands-free subscription service that will remove your personal information from hundreds of online data Brokers you just sign up enter your information and let their experts get to work they reviewed over 32,000 listings for me since I signed up after 7 days you’ll get your first privacy report that shows you everything they removed so far I just got my fourth one and delete me removed over 300 pieces of my personal information since I joined not just my name and address but my fiance’s and my mom’s too and I love that after they remove your information they’ll rescan these websites regularly you even get your own privacy adviser if you want to talk to a real person and make a custom removal request if you care about your data and your family’s privacy you can get 20% off any consumer plan with my code symbol2 by going to join delet me.com symbol2 which I’ll also link to below and a big thank you to delete me for supporting the channel and for keeping my family’s data safe all right so Micron makes the high band memory for nvidia’s Blackwell gpus but that’s just one piece of the puzzle Applied Materials ticker symbol Amat is a Silicon Valley company that makes specialized tools and equipment for chip fabrication and according to Jensen Wong nvidia’s gpus would not exist without Applied Materials Amat has revolutionized the semiconductor industry by inventing fundamental chip processing tools let me highlight three each Incredible One one it was among the first companies to manufacture epital reactors for growing semiconductor layers two amats chemical mechanical polishing tools planarized semiconductor surfaces three its batch edging tools revolutionized circuit patterning all technological Marvels thanks to amt’s contributions today we can build three nanometer chips with features 100000 times finer and processing capabilities millions of times more powerful than when my career began this progress of semiconductors allowed Nvidia to invent the GPU and accelerated Computing which led the world tackle problems that traditional computers can’t like computer Graphics scientific Computing drug Discovery artificial intelligence and self-driving cars Amat is pushing the state-of-the-art of Chip Manufacturing in a few key ways first they make machines called epitaxial reactors don’t worry I’ll keep the industry jargon to a minimum Applied Materials cural line of epir reactors is used to apply different layers of materials onto a semiconductor to improve its electrical properties like making the right areas more conductive to get it ready to become a microprocessor or a memory device Jensen also mentioned that Amat helped Pioneer something called planarized Wafers Amat makes chemical mechanical polishers or cmps which use a special solution to smooth out each layer from the epir reactor polishing these layers helps them fit together without any gaps or electrical faults and a planarized wafer is one where all the layers have been added to the wafer and Polished in preparation for the next processing step the third thing that Jensen mentioned was called batch etching and deposition at a high level etching is where the tiny channels for circuit patterns are carved into each layer of the wafer after etching the empty panels are filled with conductive metal during the deposition process which turns the planarized wafer into an electric circuit Applied Materials makes many more machines for a wide variety of Industries but I wanted to at least show you why Jensen Wong says nvidia’s chips wouldn’t exist without them the global semiconductor manufacturing Market is expected to more than double in size by 2032 which would be a compound annual growth rate of just under 10% for the next 8 years and I honestly think that estimate is conservative since generative AI is driving so much demand for advanced chips that companies like Nvidia and Micron are currently limited by Supply and these Supply constraints are actually twice as bad as most investors realize remember micron’s high bandwidth memory is made.
Nvidia’s GPUs: The Backbone of Generative AI Applications
**Nvidia’s GPUs: The Backbone of Generative AI Applications**
open ai’s gp40 is taking the World by storm and generative AI is already changing our lives in a big way just like smartphones did and the internet before that and personal computers before that but the real opportunity for investors isn’t about open AI at all it’s about Google actually no not exactly it’s about finding the companies that will win big regardless of which AI ends up on top that’s the best way to get rich without getting lucky your time is valuable so let’s get right into it first things first I’m not here to hold you hostage here’s everything I’m going to talk about in this video Micron Technology which makes the high bandwidth memory modules for nvidia’s gpus Applied Materials and their Innovations in semiconductor equipment tsmc which makes over 90% of the world’s most advanced chips and asml which might just have the biggest Monopoly in the entire AI market now your probably wondering how this list of stocks has anything to do with GPT 40 or Google Gemini so let me explain that first starting with the AI Market itself the global AI Market is expected to almost 12x in size over the next 8 years which is a compound annual growth rate of over 36% between now and 2032 by the way that’s about a three times higher growth rate than the S&P 500’s average annual rate of return of 12% over the last 10 years software and services account for about 75% of the total AI Market opportunity while Hardware makes up the other 25% and since software usually has higher margins everyone is focused on finding the winner between software companies like open Ai and Google but while their presentations couldn’t have been more different I just want to thank the incredible open aai Team Google they actually did have one big thing in common we are fortunate to have a long-standing partnership with Nvidia we are also proud to be one of the first Cloud providers to offer Nvidia Cutting Edge Blackwell gpus thanks to Jensen and the Nvidia team for bringing us the most advanced gpus to make this demo possible today now this isn’t a video about Nvidia but Nvidia is dominating the market for data center gpus with a whopping 92% market share which means almost every generative AI application and service runs on nvidia’s chips today and the market for data center accelerators is expected to more than 5x by 2032 which means demand for these chips is growing at a 24% compound annual growth rate combine that with Nvidia having gross margins north of 75% which is as high as most software companies and it’s not hard to see why Nvidia stock tripled over the last year alone Nvidia is winning big regardless of which AI comes out on top and what all of the companies in this video have in common is being involved in making nvidia’s chips that’s my plan for getting rich without getting lucky let’s start with Micron Technology ticker symbol mu Micron is an American company that makes memory for the entire Computing industry not just Nvidia Micron makes solid state drives Ram modules and flash memory for data centers consumer PCS industrial iot devices Flagship smartphones and even AIO automotive and each of these markets is currently transitioning to more advanced memory for AI applications from generative AI services and data centers to co-pilots on PCS smartphones and wearables all the way to self-driving cars as a result the global market for nextg data storage solutions like nvme solid state drives and mam is expected to more than 6X over the next decade which is a compound annual growth rate of over 22% for the next 10 years but that’s nothing compared to the market for high bandwidth memory which could grow by almost 50x in the next 7 years that’s an insane 68% compound annual growth rate for the rest of this decade now to be fair some of that crazy growth is because High bandwith memory makes up just 5% of all memory deployed today and it’s got a lot of room to grow thanks to the insane demand for generative AI infrastructure which again is dominated by Nvidia today well good thing for for micron that they make the high bandwidth memory for nvidia’s gpus high bandwidth memory works by stacking layers of individual memory chips and connecting them to a single Hub which helps pack more memory into a smaller space the goal is to increase data transfer rates and decrease overall power consumption by lowering the physical distance that the data needs to travel that’s why nvidia’s h200 data center gpus use micron’s high bandwidth memory cubes which use around 30% less power than the competition and just like Nvidia micron’s most advanced hbm Solutions have much more demand than Supply they’re already sold out for 2024 and most of their 2025 inventory has already been bought up as well Micron currently has around a 25% share of the Next Generation memory Market putting them right behind Samsung and SK HX both of which are headquartered in South Korea Micron stock is up by around 50% year to date but we’re still in the very early Innings of the AI war between companies like open aai Microsoft Google and meta platforms and as all of them keep building bigger and faster AI models they’ll need tons of high bandwidth memory and better storage solutions to handle all that data and speaking of data I recently found out that dozens of online data Brokers were selling my personal data and if you’ve been getting more spam phone calls texts or emails lately they might be selling yours too that’s why I decided to join delete me the sponsor of this video delete me is a hands-free subscription service that will remove your personal information from hundreds of online data Brokers you just sign up enter your information and let their experts get to work they reviewed over 32,000 listings for me since I signed up after 7 days you’ll get your first privacy report that shows you everything they removed so far I just got my fourth one and delete me removed over 300 pieces of my personal information since I joined not just my name and address but my fiance’s and my mom’s too and I love that after they remove your information they’ll rescan these websites regularly you even get your own privacy adviser if you want to talk to a real person and make a custom removal request if you care about your data and your family’s privacy you can get 20% off any consumer plan with my code symbol2 by going to join delet me.com symbol2 which I’ll also link to below and a big thank you to delete me for supporting the channel and for keeping my family’s data safe all right so Micron makes the high band memory for nvidia’s Blackwell gpus but that’s just one piece of the puzzle Applied Materials ticker symbol Amat is a Silicon Valley company that makes specialized tools and equipment for chip fabrication and according to Jensen Wong nvidia’s gpus would not exist without Applied Materials Amat has revolutionized the semiconductor industry by inventing fundamental chip processing tools let me highlight three each Incredible One one it was among the first companies to manufacture epital reactors for growing semiconductor layers two amats chemical mechanical polishing tools planarized semiconductor surfaces three its batch edging tools revolutionized circuit patterning all technological Marvels thanks to amt’s contributions today we can build three nanometer chips with features 100000 times finer and processing capabilities millions of times more powerful than when my career began this progress of semiconductors allowed Nvidia to invent the GPU and accelerated Computing which led the world tackle problems that traditional computers can’t like computer Graphics scientific Computing drug Discovery artificial intelligence and self-driving cars Amat is pushing the state-of-the-art of Chip Manufacturing in a few key ways first they make machines called epitaxial reactors don’t worry I’ll keep the industry jargon to a minimum Applied Materials cural line of epir reactors is used to apply different layers of materials onto a semiconductor to improve its electrical properties like making the right areas more conductive to get it ready to become a microprocessor or a memory device Jensen also mentioned that Amat helped Pioneer something called planarized Wafers Amat makes chemical mechanical polishers or cmps which use a special solution to smooth out each layer from the epir reactor polishing these layers helps them fit together without any gaps or electrical faults and a planarized wafer is one where all the layers have been added to the wafer and Polished in preparation for the next processing step the third thing that Jensen mentioned was called batch etching and deposition at a high level etching is where the tiny channels for circuit patterns are carved into each layer of the wafer after etching the empty panels are filled with conductive metal during the deposition process which turns the planarized wafer into an electric circuit Applied Materials makes many more machines for a wide variety of Industries but I wanted to at least show you why Jensen Wong says nvidia’s chips wouldn’t exist without them the global semiconductor manufacturing Market is expected to more than double in size by 2032 which would be a compound annual growth rate of just under 10% for the next 8 years and I honestly think that estimate is conservative since generative AI is driving so much demand for advanced chips that companies like Nvidia and Micron are currently limited by Supply and these Supply constraints are actually twice as bad as most investors realize remember micron’s high bandwidth memory is made.
Key Players in AI Hardware: Micron Technology, Applied Materials, TSMC, and ASML
Micron Technology, Applied Materials, TSMC, and ASML play crucial roles in the AI hardware market. Micron produces high bandwidth memory modules for Nvidia’s GPUs, catering to the increasing demand for advanced memory solutions driven by generative AI services and data centers. Applied Materials leads in semiconductor equipment innovation, providing tools like epitaxial reactors, chemical mechanical polishing tools, and batch edging tools that are integral to chip fabrication. The global semiconductor manufacturing market, where companies like TSMC dominate, is expected to grow substantially due to the surge in demand for advanced chips propelled by generative AI applications. ASML, known for its Monopoly in the AI market, holds a significant position in the industry by providing essential technologies and hardware for AI advancements.
Future Growth Prospects of the AI Hardware Market
**The Expansion Potential of the AI Hardware Market**
The global AI market is projected to grow significantly over the next eight years, with a compound annual growth rate exceeding 36% until 2032. While software and services dominate the AI market opportunity, hardware accounts for a substantial 25%. The emphasis is often placed on software companies like OpenAI and Google, but the growth of the AI market presents investment opportunities in hardware manufacturers that cater to the increasing demand for advanced chips driven by generative AI applications.
**Dominance of Data Center GPUs in AI**
Nvidia holds a dominant position in the market for data center GPUs, with a market share of 92%. Almost every generative AI application and service currently operates on Nvidia’s chips. The demand for data center accelerators is anticipated to increase more than fivefold by 2032, indicating a 24% compound annual growth rate. Nvidia’s exceptional gross margins above 75% contribute to its remarkable success, exemplifying how the company continues to thrive regardless of which AI technology emerges as a frontrunner.
**Micron’s Role in High Bandwidth Memory**
Micron Technology, an American company, plays a crucial role in the AI market by manufacturing high bandwidth memory for Nvidia’s GPUs. As the demand for advanced memory solutions rises due to the proliferation of generative AI services and data centers, Micron’s high bandwidth memory technology becomes indispensable. This technology enhances data transfer rates and reduces power consumption, making it essential for handling extensive amounts of data in AI applications.
Remember to keep an eye on the innovative developments and market trends in these hardware manufacturers as they navigate the evolving landscape of the AI industry.
