Photo by Steve Johnson on Unsplash
 

An Introduction

The AI hardware sector consists of 7 distinct sub-segments (read How Did The 7 AI Hardware Portfolios Perform In May? Here's A Summary), each with its own unique dynamics and growth trajectories.

• The first 4 sub-segments are referred to as the semiconductor value chain and consist of the 4 stages in the pure-play design, production equipment and materials, production, and testing/packaging of semiconductor wafers (chips).
• The 5th sub-segment consists of hardware companies that design their own semiconductor chips but outsource the fabrication of them to specialized manufacturers (i.e., are fabrication-less or "fabless") as opposed to doing so themselves. (Read: MunAiMarkets Pure-Play Fabless Semiconductor Companies Portfolio Rebounds In May; Unchanged YTD)
• The 6th sub-segment consists of hardware companies that design, manufacture and sell their own semiconductor chips are Integrated Device Manufacturers or IDMs, that enable them to control the entire production process, and provide greater control over efficiency and quality.

Below are the 8 largest integrated device manufacturer in the world by market capitalization with a description of their business focus, stock performances in May, in descending order, and YTD along with any recent news, analyses and/or commentary on them:
 

Integrated Device Manufacturers Stock Portfolio

1. Microchip Technology (MCHP): UP 26.0% in May; UP 1.2% YTD
   • Company Description: an American company that designs and manufactures microcontroller, mixed-signal, analog and Flash-IP integrated circuits for the automotive, consumer, industrial, and medical industries.
   • Market Capitalization: $31.0B
   • Latest News, Analyses and Commentary:
     • Microchip Technology Raises Financial Guidance for Sales and EPS for First Quarter of Fiscal Year 2026
2. Micron Technology (MU): UP 22.8% in May; UP 12.2% YTD
   • Company Description: is an American producer and marketer of computer memory and data storage solutions specializing in the design and manufacturing of dynamic random-access memory (DRAM), flash memory, and USB flash drives.
   • Market Capitalization: $107.5B
   • Latest News, Analyses and Commentary:
     • Micron Technology, Inc. (MU) is Attracting Investor Attention: Here is What You Should Know
     • Micron Stock Soars 23% in a Month: Time to Hold or Book Profits?
3. Infineon Technologies AG (IFNNY): UP 18.3% in May; UP 20.3% YTD
   • Company Description: designs, develops, and manufactures semiconductors and semiconductor-based solutions worldwide.
   • Market Capitalization: $50.5B
   • Latest News, Analyses and Commentary:
     • Infineon to revolutionize power delivery architecture for future AI server racks with NVIDIA
4. Texas Instruments (TXN): UP 14.2% in May; DOWN 2.5% YTD
   • Company Description: creates a broad portfolio of analog and embedded processing chips.
   • Market Capitalization: $167.3B
   • Latest News, Analyses and Commentary:
     • Why Is Texas Instruments (TXN) Up 12.2% Since Last Earnings Report?
5. STMicrelectronics (STM): UP 10.1% in May; UP 0.2% YTD
   • Company Description:
   • Market Capitalization: $22.5B
   • Latest News, Analyses and Commentary:
     • STMicroelectronics combines activity tracking and high-impact sensing in miniature AI-enabled sensor for personal electronics and IoT
6. Analog Devices (ADI): UP 9.8% in May; UP 0.7% YTD
   • Company Description: designs, manufactures and markets high-performance analog, mixed-signal, and digital signal processing integrated circuits to address complex engineering challenges.
   • Market Capitalization: $107.0B
   • Latest News, Analyses and Commentary:
     • Is It Too Late To Consider Buying Analog Devices?
7. NXP Semiconductors (NXPI): UP 3.7% in May; DOWN 8.0% YTD
   • Company Description: is a Dutch semiconductor designer and manufacturer specializing in automotive, industrial, IoT, mobile, and communication infrastructure solutions.
   • Market Capitalization: $49.6B
   • Latest News, Analyses and Commentary:
     • Should You Investigate NXP Semiconductors?
8. Intel Corporation (INTC): DOWN 2.7% in May; DOWN 2.5% YTD
   • Company Description: focuses on the design, manufacturing and marketing of microprocessors and chipsets.
   • Market Capitalization: $88.9B
   • Latest News, Analyses and Commentary:
     • Intel Corporation (INTC) Is a Trending Stock: Facts to Know Before Betting on It

On average, the above IDM stocks were UP 11.6% in May; DOWN 0.3% YTD.

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