As the world hurtles into an era teeming with technological innovation, the semiconductor industry stands at the forefront of this revolution. In 2024, three juggernauts emerged as pioneers, reshaping the technology landscape.
The first one has breakthroughs in semiconductor manufacturing nodes. Meanwhile, the second one has pivotal advancements in various semiconductor areas. Finally, the third one has a relentless drive for AI computing, revolutionizing the industry.
These initiatives go beyond mere business pursuits; they represent groundbreaking technological advancements, with innovative ideas seamlessly integrated into the essence of our digital existence. Dive deeper to discover the intersection of technological genius and strategic market planning.
Intel (INTC)
Intel’s (NASDAQ:INTC) progress in advancing its semiconductor manufacturing nodes has been noteworthy. That is evident from the successful execution of various nodes like Intel 7 and Intel 4 and upcoming nodes like Intel 3, Intel 20A and Intel 18A. These nodes represent different levels of technological advancements in semiconductor manufacturing. The smaller nodes indicate higher transistor density and improved performance.
Additionally, there are deployments of nearly 150 million units using Intel 7. These deployments include Alder Lake, Raptor Lake and Sapphire Rapids in Q3 2023. That magnitude highlights Intel’s ability to produce and distribute products in large quantities using advanced nodes. Also, initial shipments of Meteor Lake on Intel 4 have commenced, indicating Intel’s aggressive approach to ramping up production using state-of-the-art technology.
At its core, the utilization of Extreme Ultraviolet (EUV) tools for Intel 4 provides Intel with a competitive advantage in terms of capital efficiency compared to earlier EUV tool launches. Furthermore, high-volume EUV manufacturing in Oregon and Ireland, particularly FAB 34 in Ireland, demonstrates Intel’s focus on establishing geographically diverse and resilient supply chains, crucial for minimizing disruptions and meeting global demands.
Fundamentally, Intel’s integration of EUV technology and its efficiency in manufacturing processes are notable. Intel claimed to have achieved a more than 20% capital efficiency advantage with its EUV tools compared to its initial launch. This development indicates the company’s capacity to optimize manufacturing processes and enhance cost-effectiveness.
Finally, the anticipated impact of these technological advancements on product development, such as running Windows on Arrow Lake using Intel 20A and the 0.9 release of the PDK (process design kit) for Intel 18A, illustrates Intel’s progress toward achieving critical milestones in its semiconductor technology roadmap.
Applied Materials (AMAT)
Applied Materials (NASDAQ:AMAT) has established leadership positions at major technology inflections within the semiconductor industry. The company achieved significant milestones in various areas, including Etch, Gate All Around, Backside Power Delivery, DRAM, High-Bandwidth Memory and heterogeneous integration.
For instance, during Q4 fiscal 2023, the company passed the milestone of 10,000 shipments of the Sym3 chamber in the Etch division. Furthermore, the growth in the installed base and expansion of long-term subscription agreements showcase Applied Materials’ ability to maintain and expand its customer base.
Notably, there is a 5% increase in the installed base, demonstrating Applied Materials’ ability to attract or retain new customers. The company has an extensive installed base, more than twice the size of its nearest competitor. That implies a competitive advantage and indicates high customer trust and satisfaction.
Similarly, 63% of total parts and service revenues come from long-term subscription agreements. The fact indicates the stability and predictability of revenue streams for applied materials. There is a high renewal rate for these subscriptions, at 90%. Hence, this suggests customer satisfaction and the value derived from the company’s service offerings.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) focuses on enabling multi-billion-parameter Gen AI models to run continuously and concurrently for multiple use cases. That includes multimodal applications, indicating its dedication to revolutionizing user experiences across various devices.
Fundamentally, the transition from feature phones to smartphones and the advent of graphical user interfaces for PCs underscore Qualcomm’s exertion in the transformative impact of on-device Gen AI. Snapdragon’s projected significant role in this transformation solidifies Qualcomm’s strategic position in driving a paradigm shift in user experiences.
Qualcomm’s AI processing advancements include the 45 top performance by the Hexagon NPU and the total AI performance of 75 tops across CPU, GPU and NPU in the Snapdragon X Elite platform. These developments exemplify the company’s technical superiority in handling AI workloads.
Also, the forecasted impact on silicon content, unit sales and mix improvement resulted from the increased adoption of high-performance on-device AI in flagship devices launched by global original equipment manufacturers in 2024. Thus, this highlights Qualcomm’s potential for revenue growth and market influence.
Fundamentally, Qualcomm has made strategic expansions into the PCs and augmented reality/virtual reality fields. That marks a significant step toward diversification and capturing new growth opportunities. Furthermore, the introduction of the Snapdragon X Elite platform signifies Qualcomm’s relentless pursuit of creating superior intelligent computing experiences.
Moreover, the platform has features, including the custom Oryon CPU, exceeding the multi-threaded CPU performance of competitors while consuming significantly less power. Finally, the Adreno GPU delivers up to two times faster performance and matches peak PC performance with 74% less power, reaffirming Qualcomm’s technological edge in the PC domain.
As of this writing, Yiannis Zourmpanos held a long position in INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
