Nvidia (NASDAQ:NVDA) continues to set the bar high in the realm of artificial intelligence, consistently pushing boundaries and defying expectations. Amidst the fervor surrounding its latest quarterly earnings report, investors scoured for any potential flaws – only to find very few. As NVDA stock soared past the $1,000 per share threshold, it seemed almost predestined.
The company’s imminent challenge lies in potentially surpassing Apple (NASDAQ:AAPL) to claim the title of the world’s second-largest company by market capitalization. With the possibility of reaching a $3 trillion market cap looming, Nvidia’s recent outstanding performance is propelling it forward.
For those seeking alternatives amidst Nvidia’s meteoric rise, there are three AI stocks that could rival and even outperform the GPU giant in the latter half of the year.
Exploring Advanced Micro Devices (AMD)
If Nvidia is the blazing sun, then its runner-up in the GPU market, Advanced Micro Devices (AMD), shines brightly as well. Following a correction earlier this year, AMD emerges as a strong contender in the AI sector, gearing up to compete with Nvidia.
Despite potential shortcomings in certain aspects, AMD’s GPUs possess sufficient power to cater to a wide array of enterprise needs. The company’s ambitious pursuit, including its upcoming MI400 series of AI accelerators set for a 2025 debut, positions AMD as a formidable player in the AI arena, poised to match Nvidia’s innovations.
Diving into Super Micro Computer (SMCI)
Amidst the tumultuous spring period, data center heavyweight Super Micro Computer (SMCI) experienced a significant dip, only to show signs of recovery lately after a sharp decline. While still below its peak value by around 25%, the company’s resurgence hints at potential growth as the AI sector evolves.
As Nvidia’s stellar financial results reverberate in the industry, SMCI emerges as a compelling, albeit risky, bet for investors anticipating the dawn of a new AI era. Unlike many other companies, Super Micro Computer’s valuation remains modest, offering investors an intriguing opportunity.
Assessing Amazon’s (AMZN) AI Potential
As part of the elite Magnificent Seven, Amazon (NASDAQ:AMZN) stands at the forefront of potential beneficiaries in the ongoing AI surge. While Nvidia commands attention with its consistent stellar performance, Amazon’s prowess in the AI domain positions it as a strong competitor in the second half of the year.
By leveraging generative AI through Amazon Web Services (AWS) and enhancing consumer-facing software like Alexa with advanced AI capabilities, Amazon is primed to unlock substantial AI-driven growth. The forthcoming evolution of Alexa with enhanced AI features could present a significant opportunity for the tech behemoth.
On the date of publication, Joey Frenette held shares of Amazon and Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joey Frenette, a seasoned investment writer focusing on technology and consumer stocks, excels in identifying undervalued stocks with long-term growth potential in today’s dynamic market.
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