When we talk about Artificial Intelligence and technological revolution, we quickly think of a company: Nvidia. Since the appearance of ChatGPT at the end of 2022, this North American company has been its star and undisputed queen. In 2024, experts expect Nvidia to double its profit compared to 2023 and, in the medium term, forecasts already place it among the five global companies that will exceed 100 billion in net profits. But beyond its leadership, it is not the only company to benefit from momentum and, in fact, up to five companies beat the race for profit growth over a two-year period. Micron, Microchip, BE Semiconductor, Marvell and Advanced Micro Devices (AMD) will at least double their profits in 2025 and 2026.
At the end of September, Micron Technololgy (one of the titles of Eco30 Braided Walletthe investment fund advised by elEconomista.es) presented its results for the 2024 financial year (its financial year begins in September). After a year 2023 in which the company suffered losses of more than 5.5 billion euros, this year it recorded a net profit of 720 million. This profit figure will skyrocket in the coming years and It will be around 13.5 billion in 2026, which represents an increase of more than 1,700% in just three years.. No chip company in the world will see this much profit.
The American company is one of the world leaders in the manufacture of memory and storage technologies such as DRAM and NAND, which are also used in the development of AI. Mizho Securities indeed highlights “stronger-than-expected demand, driven by Micron’s next-generation technologies in the DRAM and NAND markets,” as one of the company’s medium-term catalysts. The company will thus go from an acquisition on the stock market to a PER (time the profit is included in the share price) of 74 times in 2024 to 8 times by 2026, which represents a reduction of 89%.
On the stock market, the company reached all-time highs of $153 in 2024. Today, it is trading down 33% and back to the $100 per share level. Analysts advise taking positions on the value for which They estimate stock market increases of 46% in the coming months.
Only one European company appears on a list that clearly dominates that of the United States. Experts predict that Dutch company BE Semiconductor will grow from a profit of just 179 million euros in 2024 to more than 420 million in 2026, an increase of 138%.
This company is dedicated to the design, manufacturing and marketing of semiconductor assembly equipment and, according to Barclays, is capable of dominating this market niche on a global scale: “We see BE well positioned in the assembly sector and with the ability to dominate the market the market“. After reaching all-time highs this year on the stock market, analysts recommend buying its shares to take advantage of this growth that will also occur on the stock market, since they see a BE 25% above current levels.
Microchip Technology, another American company, is dedicated to the manufacture of microcontrollers, memories and analog semiconductors. For this year (which will end in May 2025), experts expect that by operating its business it will make a profit of almost 840 million euros. Three years later, this figure will be around 2 billion, which means increase profits by 132% over this three-year period. “We are optimistic about the company’s competitive positioning in the automotive, industrial and consumer markets, and expect it to benefit from key trends such as 5G, vehicle electrification, ADAS and consumer spending. data centers,” they explain from Needham.
Analysts recommend buying its shares, which have also hit all-time highs this year. They are now trading 33% below, but with the prospect of approaching those highs again.
Another company Eco30 Braided Wallet sneaks into this list: the American Marvell Technology. Experts expect this semiconductor company to increase its profit level by 132% in three years, from uWe benefit from just over 1,200 million euros in 2024 to more than 2,800 million in 2026.
In the North American market, the company is on the verge of reaching new all-time highs and, even at these levels, analysts continue to advise taking a position on its price even though they believe its shares are on the point of exhausting their potential.
For the first time in its history, AMD will record a profit of more than 5 billion in 2024. In just three years, This level of profits will double and exceed 10 billion euros in 2026. Like the rest of the companies, this year its shares also reached all-time highs and saw an upward trend of 36% for the following months.
