Everyone knows Nvidia as the artificial intelligence (AI) chip leader. Its graphics processing units (GPUs) hold the largest market share by far, but they’re not the only game in town. While I think Nvidia is a phenomenal investment in its own right, I think there are several other promising chip stocks that investors may be overlooking.
If you’re looking to increase your exposure to various chip stocks, I think this group of three is an excellent place to start.
Image source: Getty Images.
1. Micron
Micron (MU +3.03%) and Nvidia aren’t competitors; they’re partners. GPUs and other computing devices need memory to rapidly access information to perform their tasks at the fastest speed possible. Micron is a key memory chip provider and is seeing unfulfillable demand. During its last quarterly conference call, its management team noted that they only have half-to-two-thirds of the necessary capacity to fulfill medium-term demand. That showcases a huge demand crunch, and with more and more data centers coming online, this lack of supply will persist for several years.
Today’s Change
(3.03%) $14.60
Current Price
$496.32
Key Data Points
Market Cap
$560B
Day’s Range
$489.40 – $506.98
52wk Range
$73.50 – $506.99
Volume
1.4M
Avg Vol
41M
Gross Margin
58.54%
Dividend Yield
0.10%
As a result, memory chip prices are soaring, leading to booming Micron revenue and earnings. Two quarters ago, Micron generated $13.6 billion in revenue. Last quarter — the second quarter of fiscal year 2026, ended Feb. 26 — that figure was $23.9 billion. Next quarter, they estimate $33.5 billion in revenue. That’s a massive boom in a short time frame and showcases the growing demand and lack of supply for memory chips.
I think Micron can be a solid stock pick here, and with memory chips being the limiting factor of artificial intelligence computing power right now, Micron is in an excellent position to thrive.
2. Broadcom
Another rising competitor is Broadcom (AVGO +0.67%). Broadcom doesn’t use GPUs like Nvidia; instead, it designs application-specific integrated circuits (ASICs) for AI workloads. ASICs aren’t a new concept, but their application in the AI sector is fairly new, although it’s starting to become a lot more popular. Broadcom boasts several major AI hyperscalers as clients, but the biggest is Alphabet. Alphabet’s Tensor Processing Units (TPUs) are becoming an incredibly popular computing chip option, with more companies starting to buy them directly from Alphabet or rent them through Google Cloud.
Today’s Change
(0.67%) $2.82
Current Price
$422.76
Key Data Points
Market Cap
$2.0T
Day’s Range
$408.86 – $425.00
52wk Range
$184.02 – $429.31
Volume
22M
Avg Vol
26M
Gross Margin
64.96%
Dividend Yield
0.59%
This is a booming business unit for Broadcom, with it growing 106% year-over-year to $8.4 billion during its past quarter. However, Broadcom believes this could be a $100 billion or greater business as soon as 2027. That’s far greater revenue growth than Nvidia is delivering, making Broadcom a solid alternative to investing in Nvidia.
3. Amazon
Amazon (AMZN +3.47%) may seem like an odd stock to include in this list, but it is truly an under-the-radar chip stock. Amazon makes this list because it has also helped design a custom AI chip, although with a different provider than Broadcom. These chips are helping rapidly grow Amazon Web Services (AWS), Amazon’s cloud computing division. AWS saw its best quarter in three years last quarter, and its custom cloud business is growing at a triple-digit pace.
Today’s Change
(3.47%) $8.85
Current Price
$263.93
Key Data Points
Market Cap
$2.8T
Day’s Range
$257.69 – $264.40
52wk Range
$178.85 – $264.50
Volume
2.4M
Avg Vol
52M
Gross Margin
50.29%
Amazon is committed to offering Nvidia GPUs on its AWS platform but also sees custom AI chips taking the majority of the market share, similar to what Amazon did earlier with cloud central processing units (CPUs). Amazon also noted that its second- and third-generation Trainium chips are at maximum capacity, and nearly all of the capacity for its fourth generation (which won’t come online for another 18 months) is already sold out. That shows how in demand custom AI chips are and the improved performance users gain over a GPU-based training. With demand being scooped up nearly instantly, Amazon has plenty of room to expand its customer AI chips business, which will lead to soaring AWS revenue, causing the stock to rise.
Keithen Drury has positions in Alphabet, Amazon, Broadcom, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Broadcom, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
