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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 and testing/packaging of semiconductor wafers (chips), namely:
  1. software design (read Custom Design Software (EDA) Stocks Relatively Unchanged In May; Down Slightly YTD). Focus: involved exclusively (i.e. pure-play) in the custom design of complex semiconductor chips using sophisticated electronic design automation (EDA) software.
  2. production equipment/material supplies (read Model Pure-Play Semiconductor Supplier Portfolio: UP 7.6% In May; UP 8.6% YTD); Focus: provide essential equipment for manufacturing chips such as lithography machines, and production materials such as chemicals and gases.
  3. production - called foundries in industry jargon (read The Pure-Play Semiconductor Foundries Model Portfolio: UP 13% in May; DOWN 7% YTD); Focus: concentrate all their efforts in the manufacturing (fabrication (or fab) in industry jargon) of chips based on the designs provided by other semiconductor companies.
  4. preparation for shipping (read The Pure-Play Outsourced Semiconductor Assembly and Test Model Portfolio: DOWN 7.7% in May; DOWN 23.4% YTD); Focus: assemble chips into finished semiconductor components, tests for defects and do the very specialized packaging of the chips for shipping.
• 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.

There are only 6 pure-play fabless semiconductor companies trading on U.S. stock exchanges and they are outlined below as to their stock performances in May, in descending order, and YTD, along with any recent news, analyses and/or commentary on them where available:

The MunAiMarkets Pure-Play Fabless Semiconductor Companies Portfolio: UP 13.1% in May; UP 0.1% YTD

1. Broadcom (AVGO): UP 25.8% in May; UP 4.4% YTD;
   • Broadcom Stock Hits All-Time High on AI Chip Breakthrough
   • Why this chip stock is still deemed a ‘must-own’ AI play
2. Nvidia (NVDA): UP 24.1% in May; UP 0.7% YTD;
   • Nvidia shares rise on strong Q1 earnings, despite export control headwinds
3. Advanced Micro (AMD): UP 13.7% in May; DOWN 8.0% YTD;
   • Here’s why HSBC analysts are giving up their bearish call on AMD’s stock
4. Monolithic Power (MPWR): UP 11.6% in May; UP 13.8% YTD;
   • Monolithic Power Systems: Holding Steady, With AI Upside Still In Play
5. Marvell (MRVL): UP 3.1% in May; DOWN 45.5% YTD;
   • Marvell’s stock is already down almost 50% this year. Here’s why it was just downgraded.
   • Marvell’s stock is falling. Here’s why investors are spooked.
6. Qualcomm (QCOM): DOWN 2.2% in May; DOWN 5.5% YTD
   • Qualcomm: AI Infrastructure At A Discount

Summary

The MunAiMarkets Pure-Play Fabless Semiconductor Companies Portfolio was UP 13.1% in May but is only UP 0.1% YTD.

More By This Author:

The Pure-Play Outsourced Semiconductor Assembly And Test Model Portfolio Was -8% In May And Is Now -23% YTD
These Major Pure-Play Semiconductor Foundries Were +13% In May; Remain -7% YTD
Model Pure-Play Semiconductor Supplier Portfolio: UP 7.6% In May; UP 8.6% YTD