AI Accelerators: 3 Semiconductor Bets to Ride the Tech Wave


  • AI is one of the latest technologies businesses are slowly adopting and integrating into their products and processes.
  • Lattice Semiconductor Corporation (LSCC): An industry leader offering low-power FPGAs with a growing portfolio ready to take on the A.I. revolution.
  • QuickLogic Corporation (QUIK): An A.I. chip developer catering to the wearables market demand.
  • Ambarella (AMBA): A system-on-chip (SoC) designer that caters to AI and autonomous driving trends.
semiconductors for ai growth - AI Accelerators: 3 Semiconductor Bets to Ride the Tech Wave

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There’s no doubt about it: 2023 is A.I.’s breakout year. It is one of the latest technologies many businesses are slowly adopting and integrating into their products and processes. The technology may seem to have sprung out of a science fiction movie or novel, but we are witnessing the product of decades of research based on the work of the founding founders of A.I., John Von Neumann and Alan Turing. Their work has set in motion the first step towards where we are today. This has led to the rise of semiconductors for AI growth.

While some A.I. may still be in its early stages in terms of global adoption, this emergence has sent some stocks to greater heights. From chip manufacturing, cloud computing, autonomous driving, and service sectors are jumping onto this trend and how it can benefit their business in the long run. In this article, we will look into the semiconductor industry and some AI chip market leaders that may be poised to become leading AI chip stocks.

Lattice Semiconductor (LSCC)

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Lattice Semiconductor Corporation (NASDAQ:LSCC) is a semiconductor company that provides low-power programmable solutions. Lattice specializes in designing and developing low-power FPGAs (field-programmable gate arrays) for implementing high-speed data processing and communication that enhances a system’s overall performance. The company is considered one of the leaders and pioneers of low-power programable technology. Lattice has been focusing on developing solutions for customer problems across the board; some examples include software development tools, system solutions such as Edge Artificial Intelligence platform security, 5G infrastructure, and automation.

Lattice Semiconductor finished its 2Q’2023 with exceptional revenue performance of almost 18% higher than its prior year. According to Jim Anderson, president and CEO, the company is focused on continuing a solid customer momentum by driving the most significant expansion of its product portfolio in the company’s history.

The continuous growth and adoption of Artificial Intelligence and machine learning put LSCC in a position to take advantage of new market development opportunities because it is an industry pioneer in low-power programmable technology. Just this year, the LSCC has won two Artificial Intelligence awards, making it one of our AI semiconductor Picks.

Quicklogic (QUIK)

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QuickLogic Corporation (NASDAQ:QUIK) is a semiconductor company that leverages fabless manufacturing to produce multi-core semiconductors with low power requirements. QuickLogic has developed artificial intelligence, voice, and sensor processing products utilizing low-power and multi-core semiconductors.

The company is the industry leader in fully open-source software and hardware open reconfigurable computing solutions. Its platform is based on an embedded FPGA intellectual property, AI software, discrete FPGAs, and multi-core SoCs (System on Chip). This makes it one of those semiconductors for AI growth you can’t ignore.

While the company revenue missed its mark due to a contract extension, QUIK was able to secure its rad-hard FPGA extension, and its company guidances cite that it expects growth in revenue of above 30%  the entire year. Quicklogic is scheduled to release its first 12nm eFPGA IP core 12nm with customers and partners. These announcements have made it another exciting year for QUIK’s growth and make it one of our picks if you are looking for semiconductors for AI Growth.

Ambarella (AMBA)

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Ambarella (NASDAQ:AMBA) is a semiconductor company developing low-power system-on-a-chip (SoC) semiconductors specializing in video and image compression and Artificial Intelligence processing. AMBA’s products are used in various applications like video, aerial drones, advanced driver assistance (ADAS), autonomous driving, and other robotics applications.

The company is now focused on building A.I. technology that allows edge devices to make decisions based on video data of the environment from its camera and sensors. Ambarella’s CVflow architecture assists computer vision algorithms in image processing, face recognition, object detection, terrain mapping, and other A.I. application uses. This is due to the architecture’s dedicated vision processing engine supported by a high-level algorithm description.

While AMBA’s results were slightly better than its reported guidance, even with cyclical headwinds, the company has been focusing on capitalizing on the A.I. boom to grow its profitability further. According to the company, they are focusing R&D on their inference AI strategy and building their CV3 platform and its new derivatives of 3rd generation AI technology. Its introduction of CV72 in Q1 has garnered strong interest and design activity that can be used on IoT and automotive applications. This is a 5nm derivative of AMBa’s CV3 SoC family. This development and recognition, like its CV3 award, shows why analysts highly recommend AMBA as a “Strong Buy” and one of our eyed stocks for the AI tech wave.

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines

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