TD Cowen: AI will not only benefit Nvidia, AMD (AMD.US), Broadcom (AVGO.US) and other chip companies will also have growth opportunities.

Research firm T.D. Cowen said the topic of generative AI has been dominated by a few large players, especially Nvidia (NVDA.US), but the team appears to be expanding.

The firm's analysts wrote in a note to investors: "Nvidia continues to dominate in terms of transaction, narrative and fundamentals, although other companies such as AMD (AMD.US), Broadcom (AVGO.US) and Marvell (MRVL.US) are beginning to expand their GenAI spending."

The analysts added that there was "no sign" of a slowdown in AI demand in the near term and noted that Broadcom recently raised its AI target for the year. Additionally, large software companies are still launching AI products, and demand could continue to grow as large customers try to achieve general AI integration.

The firm raised its price targets for AMD, Credo Technology, Cirrus Logic, Monolithic Power Systems, MACOM Technology Solutions (MTSI.US) and Nvidia.

Further research by the analysts expects the MI300X accelerator family (and its subsequent products) to help AMD generate $4.75bn and $9.5bn in sales in 2024 and 2025 respectively. Meanwhile, Broadcom is believed to be "well positioned" to benefit "beyond custom chips, from the transition to the backend network of Ethernet".

With the rising attach rate of photonic products and the continued growth of its custom silicon business, Marvell will benefit.

Moreover, Monolithic Power (MPWR.US) will also benefit from the high margin and content growth of Nvidia, AMD and its tensor processing unit (TPU) power management business (especially Broadcom's customer Google).

Credo Technology (CRDO.US) and Qualcomm (QCOM.US) are also expected to benefit in the small and mid-cap space, the firm said, as these companies "will benefit from the expansion of AI spending from data centres to smartphones and PCs, etc."