5 Chip Companies To Watch In 2021
2020 was a fantastic year for technology companies and chipmakers this year, with four of the five companies on this list being among the top 20 gainers of the NASDAQ this year. Here are the 5 chip makers and chip companies you should look out for in 2021, according to Simon Teo, senior strategist at Phillip Futures.
Selling GPUS faster than they can be manufactured
NVIDIA Corp. (NVDA: +121.52% YTD) has been an absolute darling of consumers everywhere this year. Their wildly successful RTX30 series of graphics cards have sold out in literally seconds whenever restocked, and has continued to be out of stock into 2021. In their most recent earnings quarter, data centre sales grew 162% to $1.9B, providing a hint to NVIDIA’s future earnings drivers in 2021.
AMD – Smaller and faster, but cheaper as well
2020 may be the year AMD Inc. (AMD: +99.63% YTD) can begin to declare victory over Intel Inc., as they now produce smaller, faster, and often cheaper chips as compared to their long-time rival. Under transformative CEO Lisa Su, they have set their sights on the lucrative data centre business as well, with a $35B acquisition of Xilinx.
Positioned to profit on the rollout of 5G networks
Qualcomm Inc. (QCOM: +70.83% YTD) has regularly invested millions into developing 5G technology and boosting its adoption around the world. That investment is looking increasingly shrewd for the large chipmaker, as while many expect demand for 5G phones to soar in 2021, most smartphone manufacturers now can only turn to one company to obtain a much-needed 5G chipset – Qualcomm.
Breaking a 15-year partnership with Intel
2020 was a landmark year for Apple Inc. (AAPL: +79.93% YTD), as they essentially declared freedom from Intel with the release of their new Apple Silicon range of processors. Already, their first chip for battery-power MacBooks has received rave reviews, with rival QualComm’s President calling it “a very good sign” for the industry. As Apple moves to decisively phase out Intel chips in their products, they have set their sights on further independence from other chipmakers, with Qualcomm’s cellular modems set to be replaced next.
Breaking up with tech giants everywhere
Intel Corp. (INTC: -20.25% YTD) hardly requires introduction to most people. Yet, their stock price has taken a beating in a year that has been great for their rival chipmakers. Repeated CPU supply shortages and relatively slow product development has seen them bleed their once-dominant market position away. Rolling into next year, the less-than-positive news continues to mount as reports roll in about giant clients such as Microsoft, Amazon, and Apple moving to replace Intel chips in their products with their own designs, casting a further pall on Intel’s long-term future.