Sector · 7 names
Chips, IP & EDA
Accelerators, custom chips, the CPU designs inside them, and the software used to design them all.
What matters here
Gross margin is pricing power, and Nvidia's mid-70s is the benchmark. Customer concentration is the risk: a few hyperscalers buy most data-centre chips, and they are designing their own. Chip multiples are cyclical, so a low EV / EBIT near a peak in earnings is no bargain.
Every name in the sector, total return
Total return in USD, on a log scale · grey is semiconductors (SMH)