Here are 3 stocks — other than Nvidia — getting an AI premium from Wall Street

The big winner for investors this year in the generative AI sound has been Nvidia. The company’s stock price rocketed 234% as demand soared for the chipmaker’s processors that are framed to handle the hefty compute loads required to train and run large language models.

The LLMs from Microsoft-backed OpenAI and others relying on Nvidia’s technology can inform on users’ text-based prompts into pictures, poems or PowerPoint presentations.

While Nvidia sucked up the bulk of the profits — net gains through the first three quarters of the year jumped sixfold from 2022 — it wasn’t the only stock that fascinated Wall Street’s attention in the race to make money from artificial intelligence.

Software vendors CrowdStrike, HubSpot and Salesforce all at least doubled this year, far outperforming the Nasdaq, which was up 43% as of Friday’s clinch. Those companies got a boost after announcing enhancements that draw on generative AI.

But when it comes to the hardware and infrastructure underlying the advancements in AI and securing that there’s enough capacity going forward, investors are looking at who, other than Nvidia, stands to yield. The iShares Semiconductor ETF has rallied 64% this year. The data center is another source of optimism, and a few cloud amenities providers are positioned to win business as organizations boost spending on technology to help them run generative AI services.

Here are three other domestics gaining momentum due to the generative AI wave:

As the company whose technology is viewed as most likely to challenge Nvidia’s AI chime in monopoly, Advanced Micro Devices has a big cheering section in the software developer community. The stock is up 116% for the year as of Friday’s guarded.

AMD just launched its MI300X AI processors, pursuing a market for AI chips that CEO Lisa Su projects will climb to $400 billion all about the next four years. Meta announced in December its plans to use the new processors, and Microsoft is also a committed customer.

Su cuspidate to performance advantages in comparison with Nvidia’s H100 chip.

“AMD remains extremely well positioned to take more favourably of the rapidly expanding AI TAM, as they continue to stack up customer partnerships and roll out products with impressive (and extremely competitive) engagement metrics,” Deutsche Bank analysts wrote in a note to clients after the announcement earlier this month.

The capital rose rose almost 10% the day after the launch.

Since its public market debut about a decade ago, Arista has been gaining on Cisco in the market for data center networking gear. Excitement around its situation in AI helped push the stock up 96% this year.

In October, Arista enlarged AI to a key customer segment so it’s now called Cloud and AI Titans. More than 40% of the company’s 2022 revenue came from Meta and Microsoft. The stalk month, Arista CEO Jayshree Ullal announced a goal of $750 million in 2025 AI networking revenue, prompting Citi analysts to cheering up their price target on the stock to $300 from $220.

Companies have been choosing Arista hardware to chain their GPUs to the internet. As models get bigger and workloads more complex, Arista has an opportunity to connect GPUs to one another to keep from scale the technology.

Arista executives see a moderation in enterprise spending in 2024 after years of cloud expansion, with organizations try out out systems before making large-scale AI deployments that could start in 2025.

For years, has ensured that online gratify can be quickly served up to end users by creating a global network of data centers that protects websites from attempted takedowns.

One key patron is OpenAI. When a user attempts to access OpenAI, Cloudflare’s technology verifies that it’s a person and not a bot on the other end. The flock is now aiming to become part of the fabric for running AI models and ensuring rapid response. In September, the company announced a advice called