Nvidia Leads Semiconductor Market in First Half of 2024

In the first half of 2024, Nvidia has emerged as a standout performer in the semiconductor market. The company's shares skyrocketed by 156.5%, driven by the increasing demand for AI technologies, propelling it into the exclusive US$3 trillion market capitalization club, alongside industry giants like Microsoft and Apple.

In contrast to Nvidia's success, semiconductor pioneer Intel faced notable challenges, with its stock plummeting approximately 35.2% since the beginning of the year. Despite receiving substantial funding through the Chips Act to expand chip-making facilities across several U.S. states, Intel has struggled to maintain market traction amid evolving industry dynamics.

GlobalFoundries, another key player in the semiconductor sector, saw its stock decline by around 12.8% in 2024. The company received significant Chips Act funding to support various manufacturing projects, yet market conditions posed ongoing challenges.

Microchip Technology, focusing on microcontrollers and integrated circuits, observed a modest stock increase of about 5.7% year-to-date. The company benefited from Chips Act funding aimed at enhancing its domestic semiconductor supply chain.

Texas Instruments and Advanced Micro Devices (AMD) both saw their stocks rise by 14.9% and 17.05%, respectively, during the same period. Texas Instruments specializes in analog chips and embedded processors, while AMD focuses on developing computer processors, including those for AI applications.

Analog Devices, specializing in analog and mixed-signal integrated circuits, experienced a stock increase of approximately 17.9% in 2024. Aerospace and defense-tech company BAE Systems also saw positive growth, with its stock rising about 16.6%, supported by initial Chips Act funding for modernization and research initiatives.

The US CHIPS and Science Act, as reported previously by Mexico Business News,  aims to bolster domestic semiconductor production, catalyzing a competitive "chips race" globally. Countries like Japan, South Korea, and European nations are intensifying efforts to strengthen their semiconductor capabilities, reducing dependency on key players like China and Taiwan.