Semiconductors Sector Scorecard, Q3 2023 Update - Thematic Intelligence

Companies scoring strongly in artificial intelligence (AI) and geopolitics-related themes lead the thematic screen of the analyst's semiconductors sector scorecard. Indeed, four themes (AI, AI chips, geopolitics, and China impact) jointly account for 50% of the weighting of the thematic screen, reflecting both the importance of AI, particularly generative AI, in the technology industry and the impact of the ongoing US-China trade dispute. The thematic ranking is led by companies with advanced AI products, such as Nvidia, Amazon, Tesla, and Alibaba, or capital equipment technologies essential to manufacture those advanced AI chips, such as ASML.

Changes this quarter include the addition of Arm following its $60 billion IPO in the US. A clear leader in the mobile market, its future in AI data centers is less clear, so it does not score as well as leaders Nvidia, Amazon, and Tesla. A significant industry development was the launch of Huawei's Mate 60 Pro smartphone, which appeared to include a Kirin 9000s chip manufactured by SMIC using a 7-nanometer process node, even though Chinese fabs have lost access to the most advanced extreme ultraviolet (EUV) tools from ASML, as a result of the trade dispute with the US.

Scope

This sector scorecard provides a top-down, comprehensive outlook for the key players in the semiconductors sector over the next two years, based on the key themes set to transform their industry landscape.

Reasons to Buy

• Companies that invest in the right themes become success stories. Those that miss the important themes in their industry end up as failures.
• The analyst's thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
• The analyst has developed a unique thematic methodology for ranking all major companies in all major sectors based on their relative strength in the big themes that are impacting their industries.
• Our thematic engine tags over 145 million data items across five alternative data sets-patents, jobs, deals, filings, and news-to themes. The vast datasets within our thematic engine help our analysts to produce sector scorecards that identify the companies best placed to succeed in a future filled with multiple disruptive threats.