Nvidia and more: Citi names stocks to play the semiconductor boom

Citi has identified several stocks poised to benefit from significant changes in the semiconductor industry, particularly as it evolves to integrate memory and logic for AI computing. Highlighted stocks include Nvidia, which has seen substantial growth and dominates the AI GPU market, and lesser-known companies like ASMPT and Ibiden, which are expected to grow due to AI-driven demands.

Additionally, South Korean tech giants Samsung Electronics and SK Hynix are also recommended by Citi, with expected increases in high bandwidth memory shipments aligning with AI investment growth. These companies are part of Citi's strategy to capitalize on the expanding role of semiconductors in AI technology development.

ASMPT, a Hong Kong-listed company, is recognized for its significant contributions to the semiconductor industry, particularly in catering to AI-driven demand. The company specializes in advanced packaging solutions, notably its thermocompression bonder (TCB) technology. This technology is crucial for the semiconductor assembly and packaging sector, especially as the industry shifts towards more sophisticated AI applications.

Citi analysts have highlighted ASMPT's role as a leading supplier of TCB, underlining the company's pivotal position in meeting the increasing demands of AI-driven markets. The bank forecasts a significant rise in ASMPT's AI-related contributions in the years 2024 and 2025, indicating strong growth prospects fueled by the AI sector. This positive outlook is supported by ASMPT's inclusion in prominent ETFs like the Franklin FTSE Hong Kong ETF, reflecting its strategic importance and investment appeal in the technology and semiconductor landscape.