Nvidia (NASDAQ: NVDA) remains one of the most successful stories in the stock market, fueled by the company’s venture into artificial intelligence (AI) space.
Beyond the ongoing short-term market volatility, Nvidia has rallied by a staggering 117% in 2024. Analysts maintain that NVDA still has several bullish catalysts, particularly the expectation that Nvidia’s revenue will soar due to ongoing demand for its AI chips.
However, despite Nvidia’s dominance in the semiconductor and AI market, it faces competition from other players who might offer alternatives to investors. In this context, Finbold has identified two Nvidia stock competitors with the potential to rally in 2025 and turn a modest investment of $100 into $1,000.
Picks for you
Advanced Micro Devices (NASDAQ: AMD)
Advanced Micro Devices (NASDAQ: AMD) is among the key contenders in the semiconductor industry, directly competing with Nvidia in the GPU segment. Both companies have accelerated their AI roadmaps by announcing new products catering to the market’s future.
Notably, AMD manufactures a suite of semiconductors, positioning it for growth and leading to improved results and higher earnings. For instance, AMD is set to release the MI325 and MI350 accelerators, which are anticipated to compete with Nvidia’s core products. The MI325X, scheduled for launch later this year, is expected to match the NVIDIA Hopper H200 and compete on several fronts with the Blackwell B100.
With this product pipeline, AMD will likely build on its growing revenue, inspiring investor confidence. For example, in the second quarter of 2024, the company reported revenue of $5.83 billion, reflecting a year-over-year growth of almost 9%. Net income also reached $265 million, growing by a whopping 881% YoY.
Meanwhile, AMD is witnessing a short-term correction, aligning with overall market sentiment. As of press time, AMD was trading at $136, having plunged 7% in the past week.
However, for those seeking to invest $100 in AMD, sentiments from 32 Wall Street analysts support this view. Notably, analysts at TipRanks project that AMD will hit an average price of $190 in the next year. This value reflects a possible growth of 39% from AMD’s current valuation of $136. At the same time, they are projecting a high and low target of $250 and $150, respectively.
Broadcom (NASDAQ: AVGO)
Broadcom (NASDAQ: AVGO) is another stock that could provide substantial returns, given its involvement in offering semiconductor solutions for wired infrastructure, wireless communications, and data centers.
While Broadcom is not a direct competitor to Nvidia in the GPU space, its involvement in AI is crucial. Indeed, several catalysts, such as the partnerships it has built in recent months, could help Broadcom deliver profits for investors.
For instance, the company’s AI business is catching up with Nvidia. The firm has already assisted other tech giants, Alphabet (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN), in developing customized AI chips for internal use.
Besides partnerships, Broadcom’s strength lies in its recent acquisitions. For example, the company’s second-quarter revenue jumped 47% to $13.07 billion, mainly aided by its acquisition of virtualization software specialist VMware in 2023. The results almost matched the analyst consensus of $13.03 billion.
A review of AVGO stock shows short-term volatility. The equity traded at $136 as of press time, reflecting 24-hour losses of about 1%. However, on a year-to-date basis, the stock is up 24%.
Elsewhere, 26 Wall Street analysts are expressing a bullish stance on AVGO, noting that the stock will likely experience an upside of almost 48% in the next 12 months and trade at an average price of $198. Most experts, 23, have issued a “strong buy” rating. The analysts foresee a high target of $240 and a low forecast of $170.
In summary, although Nvidia remains the clear leader in the semiconductor and AI space, the highlighted stocks offer alternatives for investors. Notably, they have the potential to record substantial profits, considering that some market participants believe Nvidia might be approaching its peak. Despite strong fundamentals in AI, investors should be mindful of how overall economic health impacts these equities.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
