According to Morgan Stanley, the introduction of Intel’s Gaudi 3 chip is projected to significantly benefit three global semiconductor companies: TSMC, Alchip, and Wistron. The chip is expected to be in high demand, particularly in the AI sector. Morgan Stanley anticipates that Intel’s supply issues will be resolved in the second half of 2024, leading to a surge in confirmed sales. TSMC will be responsible for the fabrication of Gaudi 3 chips, utilizing its cutting-edge 5-nanometer process. Alchip is expected to contribute design services for both Gaudi 2 and Gaudi 3, while Wistron is positioned as the primary baseboard supplier. The investment bank estimates that the total Gaudi shipment volume could reach 300-400k units in 2025, generating a revenue of $2-3 billion for Intel. Morgan Stanley also maintains an overweight rating on Alchip and TSMC, recognizing their long-term potential in the AI semiconductor market. This development has positive implications for TSMC, which has already experienced a 16.5% year-over-year growth in its net revenue in Q1 2024 due to the growing demand for AI chips. Its diverse customer base, including industry leaders like NVIDIA and Apple, is expected to further drive growth. Alchip’s decision to relocate its research and development operations from China to Japan highlights a strategic shift in the global semiconductor industry. The company’s expected involvement in the design of Intel’s Gaudi chips aligns with this expansion strategy. Intel’s stock has been consolidating since October 2023, with market analysts speculating about its undervaluation. The launch of the Gaudi 3 chip could potentially boost Intel’s stock value, particularly if supply constraints are resolved as predicted. As of Tuesday, Intel’s stock closed at $34.27, up 0.41%. This news underscores the growing demand for AI chips and the potential impact on the broader semiconductor industry.
Intel’s Gaudi 3 Chip to Boost TSMC, Alchip, and Wistron
