Melius Research has identified Advanced Micro Devices (AMD), Intel (INTC), and Apple (AAPL) as leading contenders for the AI "catch-up" trade in the second half of 2024. Julie Hyman and Josh Lipton, Market Domination anchors, discuss Melius Research analyst Ben Reitzes' note on these AI-related tech stocks. For more expert insights and the latest market updates, click here to watch the full episode of Market Domination. This article was written by Luke Carberry Mogan. Video Transcript Let's shift focus to another mover. Melius Research suggests that the second half of the year could bring significant gains for companies such as Intel, AMD, and Apple. Analyst Ben Reitz calls it the catch-up trade for stocks that have underperformed in the first half. He points to a similar phenomenon seen last year when these stocks struggled in the first half and then caught up in the second half. These are just a few of the companies he mentions. Reitz also highlights the positive impact of Apple's product cycle and the rebound of semiconductors like AMD and Intel. Furthermore, Reitz's note highlights that Nvidia's Blackwell isn't the only product cycle to watch in the second half.

Surprisingly, there is more to it. Therefore, as you mentioned, Julie, I find Reitz's note compelling—time to pay attention to the AI laggards once again being the focus. He discusses Apple and the iPhone 16, emphasizing that street estimates for the iPhone franchise are low. Additionally, he mentions the significance of AI-ready PCs as a major theme. While there are still uncertainties about how this will unfold, Reitz suggests that it benefits companies like Intel, AMD, and even IBM, which performed below expectations in the first half. He notes that IBM has revenue upside from Red Hat and highlights the positive impact of recent acquisitions. It's worth mentioning that the rally in Taiwanese semiconductors is also contributing to this trend. Today, we saw a significant chip rally, with TSM's market cap surpassing a trillion dollars and its valuation in the US market.