Nvidia (US:NVDA) isn’t the only semiconductor business that has seen demand for its products ramp up since ChatGPT was released at the end of last year. Semiconductor inspection equipment company Camtek (US:CAMT) has seen orders rolling in for its sensing systems as manufacturers have increased investment in their ability to produce advanced artificial intelligence (AI) chips.
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
- Huge AI tailwinds
- Improving profitability
- Consistent revenue growth
- Strong cash generation
Bear points
- Richly priced
- Dependent on huge growth
Transistors are now being packaged together into “chiplets”. This means there could be either a graphics processing unit (GPU) or a central processing unit (CPU) connected to a stack of memory chips that have been packaged together. All these chips need to be connected by several tiny wires, and this process is known as advanced packaging.