Visualizing U.S. Chip Stock Performance 🚀

What we’re showing

Year to date (YTD) performance of America’s biggest chip stocks by market cap. Price-earnings ratios (trailing twelve month) were included for additional context. All figures are as of April 3, 2024.

Strong performance across most of the sector

Nvidia wasn’t the only U.S. chipmaker to have a strong Q1. Micron Technology (memory chips) and Applied Materials (manufacturing equipment) also posted big gains.

Many of these firms have benefitted from the ongoing AI craze, as well the U.S. government’s efforts to ramp-up domestic chipmaking capacity.

What does the P/E ratio tell us?

The price-earnings ratio is the proportion of a company’s stock price to its earnings per share (EPS).

We’ve shown the trailing twelve month (TTM) P/E ratio, which divides current stock price by EPS over the past 12 months. The downside to this metric is that past performance doesn’t determine future earnings.

In terms of P/E ratios, AMD and Intel are the two outliers at 341.5 and 113.9 respectively. In AMD’s case, this means that investors are willing to pay $341.5 per $1 of earnings, suggesting that investors expect AMD to grow a lot in the future.