The generative artificial intelligence boom has seen semiconductor stocks soar this year, no more so than Club holding Nvidia (NVDA).
We're more cautious on AMD going into its earnings print on Aug. 1, as it doesn't have the same outsized exposure to generative AI technology as Nvidia.
Similarly, in a research note Monday, analysts at JMP Securities said that while "demand around generative AI remains extremely robust," elsewhere enterprise IT budgets remain constrained.
Semiconductor firms are either basking in the glory of generative AI demand, or working through excess inventory and IT budget-optimization dynamics.
And when the semiconductor firms report next month, investors will have a clearer sense on inventory challenges.
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TSM, Jim Cramer's, Jim Cramer, Jim, Tyrone Siu
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