Nvidia Is Near Its High While Its Biggest Chip Peers Sit 18% to 32% Below Theirs. These Are the Chip Stocks to Buy.
One wave of AI spending pays all five of these companies. Why do their discounts run from 2.6% to 32%?
Overview
Nvidia (NASDAQ:NVDA) closed Friday at $230.36, 2.6% below its 52-week high. Four of its biggest artificial intelligence (AI) chip peers ended the week nowhere near theirs. Advanced Micro Devices (NASDAQ:AMD) sits about 18% below its high, Micron Technology (NASDAQ:MU) about 19%, Broadcom (NASDAQ:AVGO) about 28%, and Marvell Technology (NASDAQ:MRVL) about 32%.
That spread is strange, because one wave of data center spending is paying all five companies. Nvidia expects capital spending by the five biggest hyperscalers (the biggest cloud and internet companies) to land near $800 billion this year and reach $1.3 trillion in 2027.
Details
Do the discounts rank the opportunities? I don't think they do.
Source
Originally published at www.fool.com.