Here are 3 stocks — other than Nvidia — getting an AI premium from Wall Street
Investors have done well in AMD, Arista, and Cloudflare, which stand to benefit from the expected growth in generative AI.
The Big Winner: Nvidia
Nvidia has been the top performer in the generative artificial intelligence (AI) boom this year. The company's stock price has skyrocketed 234% as demand for its processors designed for large language models continues to rise.
Nvidia's technology is used by companies like Microsoft-backed OpenAI to transform text-based prompts into images, poems, and presentations. Although Nvidia dominates the market, other tech stocks have also seen significant gains in the AI space.
Investors are benefiting from companies like CrowdStrike, HubSpot, and Salesforce, which have all doubled their stock prices this year by leveraging generative AI.
Other Stocks Gaining Momentum
1. AMD: Advanced Micro Devices (AMD) is viewed as the most likely competitor to Nvidia's AI chip monopoly. The stock has risen by 116% this year as the company launched its MI300X AI processors. With partnerships in place with Meta and Microsoft, AMD is well-positioned for future growth.
2. Arista Networks: Arista has been gaining ground on Cisco in the data center networking gear market, and its stock has increased by 96% this year. The company has added AI capabilities and aims for $750 million in AI networking revenue by 2025.
3. Cloudflare: Cloudflare has built a global network of data centers that ensure quick delivery of online content while protecting websites from takedowns. Its stock has risen by 87% this year, and the company has launched Workers AI, a service that runs on Nvidia's GPUs and spans 100 cities.
