Four chip companies account for one-third of S&P 500 gains so far this year

Purpose

Semiconductors dominate U.S. stock market rally

As of April 8, 2024, the four chip companies in the United States accounted for a staggering one-third of the increase in the S&P 500 Index.

The reasons

Why? There are only two:

• Most companies are benefiting from the current artificial intelligence boom.
• and the U.S. government’s statutory policies and actual financial subsidy efforts to increase domestic chip manufacturing capabilities.

Detailed share performance

Comapny Name	Ticker	Share price	Share performance to 01/01/2024 to 4/8/2024	P/E	Market Value
Nvidia	NVDA	871.33	+80.89%	73.02	2.18T
Micron	MU	122.95	+49.32%	N/A	136.15B
Applied Materials	AMAT	209.04	+35.41%	24.59	173.69B
Lam Research	LRCX	967.26	+29.09%	37.4	126.81B
Qualcomm	QCOM	173.62	+23.81%	25.16	193.76B
KLA	KLA	690.82	+23.27%	35.09	93.42B
Broadcom	AVGO	1336.1	+23.1%	49.53	619.18B
Advanced Micro Devices	AMD	169.9	+22.6%	322.29	274.59B
Analog Devices	ADI	196.69	+1.61%	35.2	97.54B
Intel	INTC	37.98	+0.32%	94.71	161.68B
Texas Instrument	TXN	169.46	+0.12%	23.97	154.09B

Articles related to the companies mentioned

The following are the posts on this blog that have been written so far related to the companies mentioned in this article.

Articles related to Nvidia

I have discussed the company Nvidia (ticker:NVDA) in two recent books; including:

In my book “The Rules of Super Growth Stocks Investing“:

• Section 3-3, pp. 190-191

In my book “The Rules of 10 Baggers“:

• Section 1-1, pages 23-24
• 5-6, pages 242-246, an entire subsection dedicated to this company
• Section 6-2, pages 282-285
• Section 7-1, pp. 348-285

• “The reasons for Nvidia’s monopoly and the challenges it faces“
• “How does nVidia make money? nVidia is changing the gaming rules“
• “Revisiting Nvidia: The Absolute Leader in Artificial Intelligence, Data Center, and Graphics“
• “Why nVidia failed to acquire ARM?“
• “Data center, a rapidly growing semiconductor field“

Articles related to Micron

• Another of my previous articles, “The lucrative semiconductor supply chain“
• Section 3-1 of my book “The Rules of Super Growth Stocks Investing“:
• The writing of a post is about to be completed, please look forward to the release.

Articles related to Applied Materials and Lam Research

• Another of my previous articles, “How does Applied Materials, lord of semiconductor equipment, make money?“, “How does Lam Research, top chip equipment player, make money?“, “The lucrative semiconductor supply chain“
• A dedicated introduction to Section 3-2 of my book “The Rules of 10 Baggers“
• The writing of a post is about to be completed, please look forward to the release.

Articles related to AMD

• “How AMD makes money? A rare case of turning defeat into victory“
• “Why is AMD’s performance so jaw-dropping?“
• “Data center, a rapidly growing semiconductor field“

Articles related to Broadcom

• “How does Broadcom make money? Significant changes in business approach“
• “Data center, a rapidly growing semiconductor field“

Articles related to Texas Instruments

In my book “The Rules of Super Growth Stocks Investing“:

• Sections 2-4, pp. 139-141, discussion on business efficiency
• Sections 3-7, p. 231, discussion on supply chains

In my book “The Rules of 10 Baggers“:

• Section 3-2, pp. 124-128, discussion on the semiconductor industry
• Section 6-7, page 323, discussion on capital operations of listed companies
• Appendix 3, page 394, discussion of Nifty 50

“How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!“

Articles related to Intel

In my book “The Rules of Super Growth Stocks Investing“:

• Sections 3-7, p. 231, discussion on supply chains

In my book “The Rules of 10 Baggers“:

• Section 3-2, pp. 124-128, discussion on the semiconductor industry

In this blog:

• “How does Intel make money? and the benefits to invest in it“
• “Intel’s current difficult dilemma“
• “Comparison of TSMC, Samsung, Intel’s Yield and Advanced Process“
• “Comparison of SMIC, Rapidus, TSMC, Intel, and Samsung’s new process roadmaps for future chips“

Articles related to Qualcomm

This is a company that I mention a lot in my book, “The Rules of Super Growth Stocks Investing“. There are two main parts, which investors studying Qualcomm must understand carefully:

• Section 2-3: This section has a large space discussing Qualcomm QTL department (Qualcomm technology licensing: licensing fee)
• Sections 3-7 discuss the global supply chain of the electronics industry

“Qualcomm diversifies success, no nonger highly dependend on phone“

Related articles

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• “Artificial intelligence benefits industries“
• “How Much Does Generative AI Cost?“
• “Why did US largest electricity Vistra, a turned around comapny, share return higher than Nvidia?“
• “Excluding top tech behemoths, US market grew almost zero in 2023“
• “Four chip companies account for one-third of S&P 500 gains so far this year“
• “Top five lucrative artificial lucrative intelligence listed companies“
• “The artificial intelligence bubble in the capital market is forming“
• “How does the all-powerful Huawei make money?“
• “Artificial intelligence investment trap“
• “Major artificial intelligence companies in US stocks market“
• “OpenAI, the Generative Artificial Intelligence rising star and ChatGPT“
• “Data center, a rapidly growing semiconductor field“
• “Consider Alphabet if you can buy one stock only to retire from it? “
• “How Microsoft makes money? What’s the next?“
• “How Adobe makes money? irreplaceable undocumented standard“
• “Artificial intelligence online lending platform Upstart“
• “Deep Dive The Trade Desk“
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• “What kind of company is Palantir?“
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• “Intuit, the leader in financial management software for individuals and SMEs”
• “How does Tesla make money?“
• “What’s TSMC DCF intrinsic value?How to calculate it quickly with a free tool?“
• “TSMC negative corp culture and management style are detrimental to its future and growth“
• “Four chip companies account for one-third of S&P 500 gains so far this year
• “Top five lucrative artificial lucrative intelligence listed companies“
• “What’s TSMC DCF intrinsic value?How to calculate it quickly with a free tool?“
• “How many fabs and houses does TSMC have currently and in the future?“
• “Comparison of TSMC, Samsung, Intel’s Yield and Advanced Process“
• “The TSMC cost, sell price, and R&D cost of chip foundry“
• “ASML, who dominate TSMC’s fate“
• “Comparison of SMIC, Rapidus, TSMC, Intel, and Samsung’s new process roadmaps for future chips“
• “Two long-term threats to TSMC: US and SMIC“
• “Why is TSMC’s profit margin much greater than competitors?“
• “How does TSMC make money?“
• “Zyvex and sub-nanometer semiconductor processes, will Zyvex threat TSMC?“
• “TSMC gets emerging and serious challenges“
• “How does nVidia make money, Nvidia is changing the gaming rules“
• “The reasons for Nvidia’s monopoly and the challenges it faces“
• “Why nVidia failed to acquire ARM?“
• “Revisiting Nvidia: The Absolute Leader in Artificial Intelligence, Data Center, and Graphics“
• “How does Intel make money? and the benefits to invest in it“
• “Intel’s current difficult dilemma“
• “How does Micron make money? What investors should know?“
• “How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!“
• “How AMD makes money? A rare case of turning defeat into victory“
• “Why is AMD’s performance so jaw-dropping?“
• “Qualcomm diversifies success, no nonger highly dependend on phone“
• “How does the ubiquitous Arm make money?“
• “Significant changes in Broadcom’s business approach“
• “Data center, a rapidly growing semiconductor field“
• “How does Applied Materials, lord of semiconductor equipment, make money?“
• “How does Lam Research, top chip equipment player, make money?“
• “Semiconductor replaced software and become investors’ darling“
• “The lucrative semiconductor supply chain“
• “Global semiconductor chip market in detail, big dominators and markets“
• “6 common wrong semiconductor investment myths“
• “Gen 3 semiconductor“
• “Three EDA oligopoly vendors: Synopsys, Cadence, and Mentor Graphics“
• “How does, the EDA oligopoly, Cadence make money?“
• “How does Synopsis, the EDA oligopoly, make money?“

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