Nvidia stock continues to be a dominant player in the technology market, particularly in the artificial intelligence (AI) sector.
Recently, Nvidia reported first-quarter earnings that exceeded analysts’ expectations, with an adjusted earnings per share (EPS) of $6.12 on revenue of $26 billion. This marks an astounding 461% and 262% increase in EPS and revenue, respectively, from the same quarter last year.
Analysts had anticipated adjusted EPS of $5.65 on revenue of $24.69 billion. Furthermore, Nvidia forecasts revenue of $28 billion for the current quarter, surpassing the $26.6 billion expected by analysts.
Following these results, Nvidia stock price surged nearly 7% in pre-market trading, pushing it above $1,030. This impressive performance has led to over 230% returns in the past twelve months, mainly driven by the AI explosion.
However, despite Nvidia’s remarkable growth, some investors are starting to cash out, citing the high valuation and increasing competition from companies like Intel and AMD. Additionally, the high price of Nvidia stock makes it less accessible to buy Nvidia stock for some investors, prompting them to seek alternatives that offer similar or superior growth prospects.
3 Nvidia Stock Alternatives
Here are three Nvidia stock alternatives that present compelling growth opportunities in 2024:
1. Advanced Micro Devices (NASDAQ: AMD)
Advanced Micro Devices has solidified its position as a formidable competitor in both the GPU and CPU markets, challenging Nvidia and Intel, respectively. AMD’s data center segment, which includes server CPUs, AI accelerators, graphic processing units, and accelerated processing units, has been pivotal in its growth. Notably, AMD’s Instinct MI300X GPUs are gaining market traction, with Microsoft announcing their use in its accelerated virtual machines, providing a new avenue for growth.
While 2023 was a challenging year for AMD, with full-year revenue and gross profit decreasing by 4% and 1%, respectively, the company has a track record of bouncing back. For instance, the launch of the Ryzen series significantly increased AMD’s CPU market share from the low 20s to nearly 40% over five years. AMD continues to expand its AI offerings, including the Ryzen 8040 Series mobile CPU and the Ryzen 8000G Series for desktops, both integrated with neural processing units for AI workload acceleration. Despite playing catch-up with Nvidia and Intel in certain areas, AMD’s potential for growth remains robust, making it a strong Nvidia Stock alternative for investors.
2. Micron Technology (NASDAQ: MU)
Micron Technology plays a crucial role in the AI boom with its high-performance memory products. Memory chips are essential for large neural networks, and Micron is a leader in this space with its advanced solutions. The company’s HBM3E memory boasts a data access bandwidth of 1.2 terabytes per second while consuming 30% less power than competitors. This superior product has already sold out of its supply for 2024 and most of 2025, highlighting its market strength.
Micron’s financial performance reflects its product excellence. In Q2 of 2024, the company reported revenue of $5.82 billion, up from $3.69 billion in the same quarter the previous year. GAAP net income was $793 million, a significant turnaround from the previous year’s net loss of $2.31 billion. Micron’s CEO, Sanjay Mehrotra, credited the company’s strong execution on pricing, products, and operations for these results. Despite facing challenges like the ban from China, Micron anticipates continued growth driven by AI demand and tight supply dynamics in the semiconductor industry, making it a promising stock for investors seeking growth beyond Nvidia.
3. Super Micro Computer (NASDAQ: SMCI)
Super Micro Computer, also known as Supermicro, specializes in high-performance servers and storage systems optimized for various applications, including AI. While not as large as giants like Dell Technologies and Hewlett Packard Enterprise, Supermicro’s partnership with Nvidia positions it uniquely in the market. The company’s servers, combined with Nvidia GPUs, enhance AI inference solutions, improving decision-making and response times.
Supermicro’s financial performance underscores its growth potential. The company reported a 103% year-over-year growth in net sales, reaching $3.66 billion in its latest quarter. Net income nearly doubled to $296 million compared to the previous year. CEO Charles Liang attributed this exceptional performance to the increasing demand for the company’s AI computer platforms and Total IT Solutions. For fiscal year 2024, Supermicro expects revenue between $14.3 billion and $14.7 billion, adjusted higher from previous estimates. With strong growth and robust AI product offerings, Supermicro is an attractive alternative for investors looking for stocks with better growth prospects than Nvidia stock.
Conclusion
While Nvidia stock continues to dominate the AI and semiconductor markets, its high stock price and emerging competition make it prudent for investors to consider alternatives. Advanced Micro Devices, Micron Technology, and Super Micro Computer each offer compelling growth prospects in their respective fields. As the market evolves, these companies are well-positioned to capitalize on the increasing demand for AI and related technologies, potentially offering superior returns compared to Nvidia.