Three weeks into the new year and we have new all-time highs across the three major US indices. It was a familiar catalyst that we had seen all throughout 2023, AI, that was the driving force behind the rally. One of the key elements to AI is the role of semiconductors. The world’s largest semiconductor maker, Taiwan Semiconductor stated that it expects revenue growth this year to be at least 20%, more than doubling the rate of the industry. Industry rivals such as Broadcom and Qualcomm have also indicated that the market for high-end chip manufacturing is still strong. They anticipate a significant recovery in the smartphone and PC chip sectors towards the end of 2024 and into early 2025. Microsoft also made headlines this week as it overtook Apple as the world’s most valuable company. Whilst this is not the first time that Microsoft have etched ahead of the iPhone maker, but investors now believe it will maintain its top position, supported by its growing engagement in AI.
Microsoft holds a significant share in OpenAI, the creators of ChatGPT, and has been heavily investing in research and development, forming industry partnerships, and strategically acquiring companies like LinkedIn and GitHub. These moves are aimed at acquiring data and AI expertise.
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
