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Advanced Micro Devices (AMD) and Teradyne (TER) Are Way Better AI Names Than NVDA Stock Right Now (and It’s Not Even Close!)

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Summary
Nutrition label

77% Informative

Nvidia ( NVDA ) has dominated AI and rightly been an investor favorite, but its stock has stalled, opening opportunities for challengers.

The AI chipmaker's graphics processing units (GPUs) power everything from ChatGPT to self-driving cars, cementing a track record that’s pure gold.

Despite a solid fourth-quarter earnings report that saw the chipmaker beat analyst expectations on the top and bottom line, investors were disappointed by guidance that didn't offer up the kind of robust growth they expected.

Teradyne's core smartphone market and increasing AI -related demand should drive compute and memory-related revenue growth over the next few years .

The ongoing on-shoring and capacity expansion in the semiconductor market as tech companies seek to derisk their China exposure as a significant tailwind.

TER trades at a fantastic discount to Nvidia 's and TER 's lean $19 billion size and P/E of 27 make it a cheap alternative.

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79

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