Nvidia’s (NASDAQ:NVDA) dominance in 2023 on the emergence of its AI chips has investors seeking the next AI chip stock that can provide similar returns. Pretty much every tech firm and every chipmaker is addressing the opportunity in some form or another. This has led to the rise of AI stocks to buy.
In reality, there are but a few firms in the chip space to consider. Nvidia has done so incredibly well that there’s no reasonable argument against it. I won’t discuss it here simply because it’s too obvious at this point.
Instead, the other big AI chip firms are discussed here because they are massive opportunities as Nvidia cools very, very slightly. So here are other AI stocks to buy.
AMD (NASDAQ:AMD) isn’t that far behind Nvidia when it comes to AI chips. The stock has received a lot of press as the 1st runner-up this year in the AI race. It should receive a lot more, especially later in the fourth quarter.
AMD plans to debut its new AI chips, the MI300 series, later this year. The firm is already receiving strong enterprise interest in regard to the chips. That’s a strong signal that Nvidia’s chips, despite being heralded for their supremacy, are not the only chips that end users want. The truth is, they’re expected to challenge Nvidia’s chips when released.
AMD has a clear opportunity to challenge Nvidia for AI chip market share. It also has an opportunity to modify those chips for the Chinese market. Other firms have modified their chips for sale to China which faces performance limits on chips imported into the nation. AMD has not yet modified its chips and thus could open up additional revenue streams should it choose to do so.
Intel (NASDAQ:INTC) is always in the conversation when it comes to chip stocks with potential. The firm has not had the greatest track record of late but its AI chips make it worth following, especially this fall.
In fact, Intel is already on record stating that its Gaudi 2 chip will beat Nvidia’s H100 GPU this fall. Intel’s Gaudi 2 chip went head-to-head against the H100 GPUs in a series of 8 tests. Nvidia’s chips were the fastest at all 8 tasks. However, it could soon outperform Nvidia’s H100 in some applications. The Gaudi 2 chips have emerged as the only viable alternative at this point which makes the stock highly intriguing moving into the fall
Beyond that, Intel is also planning to release its next-generation Gaudi 3 chip sometime in 2024. It’s clear that Intel has a chance to make inroads into enterprise AI that can meaningfully propel the firm forward and raise share prices.
Qualcomm (NASDAQ:QCOM) is, in general, a very promising stock at the moment. It offers a substantial upside in its target price and a healthy dividend as well. The combination of both implies that investors could realize strong returns should they place their capital in its shares now.
Qualcomm is very well known as a major supplier of chips to Apple (NASDAQ:AAPL). It is well-established within that vertical. Perhaps unsurprisingly then, Qualcomm is planning to apply its knowledge of phone chips to AI. The firm intends to build Snapdragon chips that process AI tasks directly on smartphones. That would mean that smartphones would then not be reliant upon data center AI and cloud processing for AI applications. This makes it one of those AI stocks to buy.
Qualcomm could then sell those chips to Apple which would be a major victory. Apple has long sought to distance itself from Qualcomm and bring chip production in-house. However, the efforts have not panned out. Qualcomm would score a massive victory if it could achieve that goal and hold Apple hostage as an AI-chip supplier for its iPhones.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.