Barclays Bank Boosts Shares in U.S. Chip Firms, Expects to Benefit from Metaverse and ChatGPT

The Barclays Bank analyst team has increased its investment in major US chip maker stocks such as Advanced Micro Devices (AMD), Qualcomm Inc, and Seagate Technology Holdings, believing that chipmaker stocks will not return to lows seen in the last 3 months and that they will see growth in the near future.

In support of this, Barclays raised its investment weight to “overweight” from “equal weight,” which underpins the Philadelphia semiconductor stock index in the US. As a result, the Philadelphia SE Semiconductor index rose 5% on Monday (Jan. 23), marking its strongest single-day gain since November 30, 2022. The index has soared more than 30% from a two-year low set in mid-October 2022, outpacing the Nasdaq by about 10% over the same period.

The analysts stated that many chip companies such as AMD and Nvidia are likely to benefit from the metaverse, as the platform is expected to invest billions of dollars in building a metaverse business. Additionally, Nvidia is a stock that Wall Street investors believe will benefit from the ChatGPT boom, given its dominance in graphics chips designed for demanding computing tasks, which are crucial for the production of artificial intelligence (AI).

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