The semiconductor market is not just about Nvidia (NASDAQ:NVDA), folks! Undoubtedly, the recent gains posted by the GPU giant have been nothing short of wild. Though investors may be looking to other plays in the semiconductor basket for the next Nvidia, I’m not so sure that anything will be able to catch Nvidia’s crown at this juncture. Still, there are more semiconductor stocks to consider.
Undoubtedly, Nvidia’s lead has drawn more than just enthusiasm on the part of investors. With the company’s latest blowout number helping power gains against some ridiculously high expectations (that called for perfection, or maybe more than perfection), questions linger as to what’s up next for the AI juggernaut and its rivals.
As new AI innovations (think OpenAI Sora and other text-to-anything models) draw more GPU utilization, it certainly seems like the AI chip trade is far from over. But whether Nvidia has a big encore for gain-chasing investors, though, remains to be seen. In any case, let’s look at three semiconductor stocks that are sure to try their best to win the love of Nvidia’s investor crowd.
AMD (AMD)
Nvidia has set such a high bar that it will be tough for any competing firm to make the jump. Don’t count on rival GPU makers like AMD (NASDAQ:AMD) to stop trying, however.
There’s a lot of runway for AMD if it can nibble just a bit more market share in the AI chip space. What AMD does have on its side is the ability to innovate and operate in an effective fashion. Under CEO Lisa Su’s watch, I expect nothing short of exceptional performance from the firm as it looks to show what “play number two” in AI chips is truly capable of.
The company’s acquisition of Xilinx was quite intriguing and will help AMD thrive (and diversify) into the realm of FGPAs (Field Programmable Gate Arrays). Though FPGAs don’t come close to GPUs regarding AI chip dominance, I do view the move as strategic, as a growing number of AI applications looks to be powered by chips beyond GPUs. Add AMD’s CPU exposure into the equation, and AMD looks like a magnificent chip company in its own regard.
Can AMD snag Nvidia’s crown? Don’t count on it. But that doesn’t mean its gains will be limited from here, especially as the firm looks to be a force in AI PCs.
Intel (INTC)
Intel (NASDAQ:INTC) is the legendary chip maker that got left behind in the past as sprinters like AMD gradually moved ahead of it in recent years. Although Intel is an old-school company that’s still turning things around to better compete with its modern-day rivals, it seems to be making up for lost time with its ambitious turnaround plans.
Undoubtedly, you’d be hard-pressed to find anybody who thinks Intel has a puncher’s chance of snagging the crown from Nvidia in the realm of AI acceleration. And though I think the chances of such are close to zero, I do not doubt the firm will put in its all to gain some ground in the semiconductor market.
Intel’s betting big on its AI acceleration tech, like its Gaudi3 AI chip built for generative AI applications. Gaudi3 is Intel’s competing product with AMD and Nvidia. But whether it can dent the industry remains the billion-dollar question. Either way, Intel stock is a compelling CPU and AI chip play for those who don’t mind playing from behind. Still, it’s one of those semiconductor stocks to consider.
Nvidia (NVDA)
Who better to take Nvidia’s crown than, well, Nvidia? CEO Jensen Huang is always trying to build something that’s leaps and bounds ahead of what his firm has on the market. The H100 Tensor Core GPU is a powerful piece of technology that firms serious about AI are more than willing to pay a premier price for.
While firms fight to grab as many as possible, Nvidia is already hard at work on something far better: the H200 chip on its impressive Hopper architecture. That’s the beauty of Nvidia; it’s already thinking years ahead of the pack. And that could keep it in the lead for many years into the future as the AI revolution takes hold.
Perhaps the only firm that can top Nvidia’s best-available products is Nvidia. And for that reason, it’s the semiconductor stock to keep on your radar, even after its historic run.
On the date of publication, Joey Frenette did not hold (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.
