{"id":24321,"date":"2023-12-26T21:00:08","date_gmt":"2023-12-26T21:00:08","guid":{"rendered":"http:\/\/107348569"},"modified":"2023-12-26T21:00:08","modified_gmt":"2023-12-26T21:00:08","slug":"here-are-3-stocks-other-than-nvidia-getting-an-ai-premium-from-wall-street","status":"publish","type":"post","link":"https:\/\/wp.worldtechguide.net\/here-are-3-stocks-other-than-nvidia-getting-an-ai-premium-from-wall-street\/","title":{"rendered":"Here are 3 stocks \u2014 other than Nvidia \u2014 getting an AI premium from Wall Street"},"content":{"rendered":"<p><span class=\"HighlightShare-hidden\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-106266491\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Lisa Su, president and CEO of AMD, during an interview with Mad Money, broadcasting from CNBC&#8217;s San Francisco bureau on November 21, 2019.<\/p>\n<p>Jacob Jimenez | CNBC<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The big winner for investors this year in the generative AI boom has been <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><span class=\"waslinkname\">Nvidia<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>. The company&#8217;s stock price rocketed 234% as <span class=\"waslinkname\">demand soared<\/span> for the chipmaker&#8217;s processors that are designed to handle the hefty compute loads required to train and run large language models.<\/p>\n<p>The LLMs from <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\"><span class=\"waslinkname\">Microsoft<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>-backed OpenAI and others relying on Nvidia&#8217;s technology can turn users&#8217; text-based prompts into pictures, poems or PowerPoint presentations.<\/p>\n<p>While Nvidia sucked up the <span class=\"waslinkname\">bulk of the profits<\/span> \u2014 net income through the first three quarters of the year jumped sixfold from 2022 \u2014 it wasn&#8217;t the only stock that attracted Wall Street&#8217;s attention in the race to make money from artificial intelligence.<\/p>\n<p>Software vendors <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-5\"><span class=\"waslinkname\">CrowdStrike<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-6\"><span class=\"waslinkname\">HubSpot<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-7\"><span class=\"waslinkname\">Salesforce<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> all at least doubled this year, far outperforming the Nasdaq, which was up 43% as of Friday&#8217;s close. Those companies got a boost after announcing enhancements that draw on generative AI.<\/p>\n<p>But when it comes to the hardware and infrastructure underlying the advancements in AI and ensuring that there&#8217;s enough capacity going forward, investors are looking at who, other than Nvidia, stands to gain. The iShares Semiconductor ETF has rallied 64% this year. The data center is another source of optimism, and a few cloud service providers are positioned to win business as organizations boost spending on technology to help them run generative AI services.<\/p>\n<p>Here are three other stocks gaining momentum due to the generative AI wave:<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">AMD<\/h2>\n<div class=\"group\">\n<p>As the company whose technology is viewed as most likely to challenge Nvidia&#8217;s AI chip monopoly, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-8\"><span class=\"waslinkname\">Advanced Micro Devices<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> has a big cheering section in the software developer community. The stock is up 116% for the year as of Friday&#8217;s close.<\/p>\n<p>AMD just launched its MI300X AI processors, pursuing a market for AI chips that CEO Lisa Su projects will climb to $400 billion over the next four years. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-9\"><span class=\"waslinkname\">Meta<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> announced in December its plans to use the new processors, and Microsoft is also a committed customer.<\/p>\n<p>Su pointed to performance advantages in comparison with Nvidia&#8217;s H100 chip.<\/p>\n<p>&#8220;AMD remains extremely well positioned to take advantage of the rapidly expanding AI TAM, as they continue to stack up customer partnerships and roll out products with impressive (and extremely competitive) performance metrics,&#8221; Deutsche Bank analysts wrote in a note to clients after the announcement earlier this month.<\/p>\n<p>The stock rose <span class=\"waslinkname\">rose almost 10%<\/span> the day after the launch.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Arista Networks<\/h2>\n<div class=\"group\">\n<p>Since its public market debut almost a decade ago, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-11\"><span class=\"waslinkname\">Arista<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> has been gaining on <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-12\"><span class=\"waslinkname\">Cisco<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> in the market for data center networking gear. Excitement around its position in AI helped push the stock up 96% this year.<\/p>\n<\/div>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-102265308\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>President and CEO of Arista Networks, Jayshree Ullal.<\/p>\n<p>Scott Mlyn | CNBC<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>In October, Arista added AI to a key customer segment so it&#8217;s now called Cloud and AI Titans. More than 40% of the company&#8217;s 2022 revenue came from Meta and Microsoft. The following month, Arista CEO Jayshree Ullal announced a goal of $750 million in 2025 AI networking revenue, prompting Citi analysts to lift their price target on the stock to $300 from $220.<\/p>\n<p>Companies have been choosing Arista hardware to connect their GPUs to the internet. As models get bigger and workloads more complex, Arista has an opportunity to connect GPUs to one another to help scale the technology.<\/p>\n<p>Arista executives see a moderation in enterprise spending in 2024 after years of cloud expansion, with organizations testing out systems before making large-scale AI deployments that could start in 2025.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Cloudflare<\/h2>\n<div class=\"group\">\n<p>For years, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-13\"><span class=\"waslinkname\">Cloudflare<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> has ensured that online content can be quickly served up to end users by creating a global network of data centers that protects websites from attempted takedowns.<\/p>\n<p>One key customer is OpenAI. When a user attempts to access OpenAI, Cloudflare&#8217;s technology verifies that it&#8217;s a person and not a bot on the other end. The company is now aiming to become part of the fabric for running AI models and ensuring rapid response. In September, the company announced a service called <span class=\"waslinkname\">Workers AI<\/span>, which runs on Nvidia&#8217;s GPUs and will be spread across 100 cities.<\/p>\n<p>&#8220;With a consumption pricing model, these services could drive meaningful upside to revenue as adoption ramps through 2024,&#8221; Morgan Stanley analysts, who have the equivalent of a hold rating on the stock, wrote in a November report.<\/p>\n<p>Cloudflare shares have jumped 87% so far in 2023.<\/p>\n<p><strong>WATCH:<\/strong> <span class=\"waslinkname\">Nvidia is \u2018the cheapest\u2019 AI play out there, top Bernstein analyst says<\/span><\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-107348552\">\n<div role=\"button\" id=\"Placeholder-ArticleBody-Video-107348552\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000326082\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/wp.worldtechguide.net\/wp-content\/uploads\/2023\/12\/here-are-3-stocks-other-than-nvidia-getting-an-ai-premium-from-wall-street.jpg\" alt=\"Nvidia is \u2018the cheapest\u2019 AI play out there, top Bernstein analyst says\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><em><strong>Don&#8217;t miss these stories from CNBC PRO:<\/strong><\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Lisa Su, president and CEO of AMD, during an interview with Mad Money, broadcasting from CNBC&#8217;s San Francisco bureau on November 21, 2019. Jacob Jimenez | CNBC The big winner for investors this year in the generative AI boom has been Nvidia. The company&#8217;s stock price rocketed 234% as demand soared for the chipmaker&#8217;s processors &hellip;<\/p>\n","protected":false},"author":1,"featured_media":24323,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"hashtags":[],"_links":{"self":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/24321"}],"collection":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/comments?post=24321"}],"version-history":[{"count":0,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/24321\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media\/24323"}],"wp:attachment":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media?parent=24321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/categories?post=24321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/tags?post=24321"},{"taxonomy":"hashtags","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/hashtags?post=24321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}