Question 1

What are custom AI accelerators?

Accepted Answer

Custom AI accelerators are bespoke silicon chips designed by cloud companies specifically for their own artificial intelligence workloads, rather than using general-purpose GPUs bought off the shelf. Unlike standard chips optimised for a broad range of tasks, these purpose-built chips are engineered to run a specific company's AI models more efficiently and at lower operating cost. The shift towards custom silicon is considered a structural, long-term change in how the AI hardware market is organised.

Question 2

What is EUV lithography?

Accepted Answer

Extreme ultraviolet (EUV) lithography is the technology used to etch microscopic circuitry onto silicon wafers when manufacturing advanced chips. ASML, a Dutch company, holds a monopoly position in producing EUV machines, which are essential for fabricating the most advanced custom AI chips. Without ASML's equipment, foundries like Taiwan Semiconductor simply cannot manufacture cutting-edge silicon at scale.

Question 3

What is EDA software in chip design?

Accepted Answer

Electronic design automation (EDA) is the specialised software engineers use to design chips before a single wafer is produced. Cloud companies rely on EDA tools to translate their AI requirements into workable silicon designs. Firms such as Synopsys and Cadence are EDA specialists that benefit directly from the surge in custom chip activity, as every new bespoke chip design represents a contract opportunity for them.

Question 4

Is investing in custom AI chip stocks risky?

Accepted Answer

Yes — investing in technology hardware carries real risks. Supply chains can be disrupted, geopolitical tensions can affect semiconductor manufacturing, and the pace of custom chip adoption may not match current market expectations. Companies like NVIDIA, Taiwan Semiconductor, and ASML are all exposed to these dynamics. All investments carry risk and you may lose money, so it is important to consider your financial situation before investing.

Question 5

How do I invest in custom AI accelerator stocks?

Accepted Answer

You can invest in custom AI accelerator stocks through Nemo, an ADGM-regulated investment platform offering commission-free trading and fractional shares from as little as $1. Nemo's curated theme covers the full supply chain — from chip design software to foundries to data centres — so investors can gain exposure across multiple companies simultaneously rather than having to pick a single stock.

Question 6

Is a basket approach better than picking one AI chip stock?

Accepted Answer

A basket approach allows you to hold positions across multiple parts of the custom AI chip supply chain at once, reducing your dependence on any single company's performance. The custom silicon story could play out through NVIDIA's co-design pivot, record orders for Taiwan Semiconductor, or accelerating demand for ASML's EUV machines. Holding a diversified theme does not eliminate risk, but it does spread it more broadly across the opportunity.

Question 7

Top custom AI accelerator companies to watch?

Accepted Answer

According to Nemo's research, three companies are particularly central to the custom AI accelerator theme. NVIDIA (NVDA) is adapting by offering co-design services to cloud providers. Taiwan Semiconductor (TSM) is the world's leading foundry and the primary manufacturer turning hyperscaler chip designs into actual silicon. ASML holds a monopoly position in EUV lithography machines, making it indispensable to advanced chip manufacturing globally.

Question 8

Why are big tech companies building their own AI chips?

Accepted Answer

Hyperscalers — the cloud giants running global data centre networks — concluded that a chip purpose-built for their specific AI workloads could outperform a general GPU while costing less to run. Rather than buying processing power off the shelf, they are now investing billions in bespoke silicon tailored to their own models. This logic is driving a structural shift across the entire semiconductor industry, not just a short-term trend.

Question 9

What role does Taiwan Semiconductor play in AI chip production?

Accepted Answer

Taiwan Semiconductor Manufacturing (TSM) sits at the physical heart of the custom AI chip theme. As the world's leading foundry, it is the primary manufacturer that takes hyperscalers' custom chip designs and turns them into actual silicon. Regardless of who designs a custom AI chip, TSM is highly likely to be involved in making it, giving the company a uniquely central and resilient position in the supply chain.

Question 10

Is the AI hardware sector undervalued compared to AI software stocks?

Accepted Answer

The broader AI investment conversation has, until recently, been dominated by software companies and large-cap platform businesses. Some analysts believe the hardware layer has received comparatively less attention, meaning parts of it may not yet fully reflect the scale of the structural change underway. However, this is not a guarantee of returns — it simply suggests the hardware infrastructure underpinning all AI models may represent a different and potentially overlooked slice of the opportunity.

Question 11

Can I invest in AI chip stocks from Africa?

Accepted Answer

Yes. Nemo is specifically designed to give investors in Africa access to global AI hardware stocks, including companies like NVIDIA, Taiwan Semiconductor, and ASML. The platform is regulated by the ADGM and offers commission-free trading, AI-powered research insights, and fractional shares starting from just $1 — making it accessible even for those investing smaller amounts. All investments carry risk and you may lose money.

Question 12

What is a thematic investment portfolio?

Accepted Answer

A thematic investment portfolio groups together companies linked by a shared structural trend — in this case, the shift to custom AI accelerators. Rather than picking individual winners, a thematic approach gives investors exposure to an entire supply chain or industry shift at once. Nemo's custom AI accelerators theme covers companies spanning chip design software, foundries, and data centre infrastructure, curated by an in-house analyst team.

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