SA Asks: What’s a good alternative stock to Nvidia? (NASDAQ:NVDA)

Nvidia’s (NASDAQ:NVDA) stock has rocketed 154% this year, its performance powered largely by a seemingly insatiable demand for its GPU chips amid the proliferation of AI technology.

But Nvidia isn’t necessarily the only way to cash in on the chip feeding frenzy. Which brings us to today’s SA Asks investment question: What’s a good alternative stock to Nvidia?

We asked SA analysts Jonathan Weber, Michael Del Monte, Uttam Dey and Jere Wang of JR Research for their picks.

Jonathan Weber: I believe Taiwan Semiconductor Manufacturing Company (TSM) is a great alternative. It’s got an excellent market position and moat, strong growth, and benefits from Nvidia‘s momentum due to being Nvidia‘s manufacturer. It’s also significantly cheaper than Nvidia.

Michael Del Monte: You can play the trade a number of ways. I prefer going down one level to Oracle (ORCL), Dell (DELL) and Hewlett Packard Enterprise (HPE) as buyers of the GPUs for server builds, and in turn, for building out AI factories. Premiums remain relatively low, offering some upside potential from a valuation perspective.