SA Asks: What's a good alternative stock to Nvidia? (NASDAQ:NVDA)
What drove Nvidia's 154% stock increase this year?
Nvidia's 154% stock increase this year was driven by strong demand for its GPU chips due to the rapid growth of AI technology. The company's dominant position in the AI chip market and its soaring revenue from data centers contributed to its impressive performance.
Why is TSM considered a good Nvidia alternative?
TSM is considered a good Nvidia alternative due to its strong market position, wide moat, and growth potential3. As Nvidia's manufacturer, TSM benefits from Nvidia's momentum and is significantly cheaper than Nvidia. Additionally, TSM plays a crucial role in the AI ecosystem, being the global leader in semiconductor production and having a diverse customer base.
How does Oracle, Dell, and HPE benefit from GPU purchases?
Oracle, Dell, and HPE benefit from GPU purchases as they are buyers of the GPUs for server builds, enabling them to build out AI factories. These companies integrate the GPUs into their server offerings, enhancing their computing power and capabilities to cater to the growing demand for AI technology in various industries. This allows them to expand their product portfolios and tap into the lucrative AI market.