Markets are always in motion, even during uptrends and downtrends, which is why it's important to sift through the constant movement to take advantage of opportunities. Yes, the stock niches are impacted by a variety of parameters, including tech breakthroughs, trends in the market and economic fluctuations. Certain equities have recently demonstrated tremendous growth potential.

 

So as the title of this piece gives it away already, as one of these stocks is Nvidia. It recently became the highest-valued company, as far as market cap is concerned. Understanding why the other stocks appear on this list requires a closer examination of Nvidia and its position, and that's exactly what we will do.

 

Contents:

- Why the examples are getting boosts

- The long-term value of AI-centric stocks

- Other examples to monitor

- The next big player in chip-building

- Considerable growth of other significant stocks

- Should there be concern?

- Final thoughts

Why the examples are getting boosts

Before we go into the list of companies that are set to receive a boost according to some experts, we have to address the common theme that links them. To do this, here is a quick look at Nvidia on its own, including why it's the one company that seems to be in the spotlight in this regard.

 

For those who aren't in the know, on 18th June 2024, the organization reached the top of the most valuable companies list by market cap, at 3.34 trillion dollars. While it has fallen to third place once again, it was still a great feat that was made possible by two things, which are:

- The entity's second-to-none chips, or Graphic Processing Units (GPUs)

- The world's current interest in artificial intelligence

The long-term value of AI-centric stocks

The latter of the two points is the main reason for the organization's rapid growth as somewhere in the last decade, its GPUs were discovered to be perfect tools for AI within updates on the market. These reasons are why despite its recent stock price drop, which many will agree was due to the normal occurrence of profit-taking, there isn't too much of a worry. If anything, many see the stock as worth getting still for several reasons which include the following:

- The current craze and surge in AI technology demand

- The unveiling of a new set of GPUs set to be released next year

- Their relatively cheap stock price, especially when you consider the other tech giants

Other examples to monitor

If Nvidia is any indication, it's safe to say that AI is the major factor that has contributed to its great rise in value. Because we are in an AI craze, the stocks we'll cover here are in the space, and we might as well get the big players out of the way first, and these include the likes of Apple, and Microsoft.

 

These two stocks in particular are also dealing with the world of AI, with Apple being the one making noise as of late due to its exciting endeavor known as Apple Intelligence announced at WWDC 2024. This endeavor has Apple becoming the talk of the town as they're using their chips, something that we should keep an eye on as Nvidia dominates that market.

 

The next big player in chip-building

While Apple is always in the mix of companies within the AI space that you should think about, it doesn't have the potential for boosting as others. For example, one such player is cybersecurity stock: SentinelOne. It has seen a 30% price drop since January.

 

Despite this, many analysts see the upside in the company because its financials are improving, and the next six months could see stock price increases of upwards of 98%. You can use the Finage charts and real-time and historical data for acquiring improved analysis and more. Buying the stock would be a theoretically good idea because as it stands, the price tag is miniscule.

 

If you're looking for stocks that mimic Nvidia in not only growth path but space as well, consider another GPU-builder, AMD. This company isn't as large, but it's seen major growth in the last year, owing to the AI craze, as well as its chip-building, which is second after Nvidia. This, however, only means that it has the potential to do some serious things going forward.

 

Considerable growth of other significant stocks

Some stocks have demonstrated the promise for considerable growth. Other stocks that are ready for a rally:

- Advanced Micro Devices (AMD). The major driver that competes directly against Intel and Nvidia in the CPU and GPU sectors. AMD provides CPUs for popular game consoles such as PlayStation and Xbox.

- Tesla (TSLA). Tesla's Model 3 and Model Y continue to dominate. Tesla's batteries and solar products help to diversify its income streams. The expanding renewable energy industry promotes long-term growth.

- Alphabet's (GOOGL). Google's dominance in online advertising provides steady income. Revenue streams are increasing as mobile and video advertising expands.

- Microsoft (MSFT). Microsoft's cloud platform, Azure, is a significant income generator. Hybrid cloud services for personal and business use are driving growth. High margins due to scalable online services and SaaS subscriptions.

Should there be concern?

One concern that many have regarding the many AI stocks is that they're akin to the dot-com bubble that burst in the early 2000s. The truth is that it's 50/50. This is because some say that their actual value is tied to AI products like GPUs, but the opposite may be true as some tools could be hyperinflation. With such a craze, it's always good to be cautious.

 

So the reverse may be true: certain tools may be overhyped and fail to achieve the desired results. As well, certain AI companies may be overvalued in the same way that many Internet companies were valued much beyond their true worth during the height of the Internet era. And yes, the market enthusiasm for AI may result in speculative investments, driving stock values to unsustainable heights.

 

Final thoughts

One look at the few stocks mentioned along with Nvidia, and it's clear that the AI interest that's rapidly rising is more than just another trend. Many people see the value in it, hence why they seek to look for other alternatives to buy outside the number one chip maker.

 

While these do exist, it's always wise to be cautious when choosing any of them, as despite the interest in AI, nothing is ever certain when it comes to stocks. The case is only made further when you think of the queries surrounding the bubble concerns. In any case, we can only look to the future and make our guesses and predictions. In any case, having accurate basic data is critical for making good choices regarding investments. Finage delivers a complete fundamentals data solution that includes thorough financial data on stocks, crypto and other financial assets!

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