While the supply constraints have already impacted the semiconductor industry, Russia’s invasion of Ukraine could lead to further chip shortages. However, robust demand from consumer electronics and electric vehicles industries has allowed semiconductor companies to raise prices and generate substantial profits. Furthermore, continuing advancements in artificial intelligence (AI), the Internet of Things (IoT), and 5G connectivity are expected to keep driving demand in the semiconductor sector. According to a Fortune Business Insights report, the global semiconductor market is projected to grow at an 8.6% CAGR by 2028. Therefore, both Micron Technology (MU) and Advanced Micro Devices (AMD) should benefit.
MU designs, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit; Mobile Business Unit; Storage Business Unit; and Embedded Business Unit. AMD operates in two segments: Computing and Graphics; and Enterprise, Embedded, and Semi-Custom. Its products include x86 microprocessors, chipsets, discrete and integrated graphics processing units, data centers, and professional GPUs.
