NVDA - A Wall Street Analyst Believes This Semiconductor Stock Is Better Than Nvidia and It Could Jump an Impressive 71%
2024-01-26 17:00:00 ET
Semiconductor stocks have been in fine form on the market, which is evident from the impressive 56% gains recorded by the PHLX Semiconductor Sector index over the past year. Graphics specialist Nvidia (NASDAQ: NVDA) has played a starring role in this surge as its shares have shot up a whopping 233% during this period, driven by the company's rock-solid position in the market for artificial intelligence (AI) chips.
Nvidia's graphics processing units (GPUs) have witnessed massive demand thanks to their ability to train large language models (LLMs), which form the backbone of popular applications such as ChatGPT. The price of each AI-focused GPU that Nvidia sells can range from $10,000 to $30,000. It is worth noting that the company reportedly makes a profit of almost 1,000% on these chips, according to investment banking firm Raymond James .
The market for AI chips is set to grow rapidly in the future and Nvidia is in the pole position to capitalize on its growth , but Citi analyst Atif Malik believes that Marvell Technology (NASDAQ: MRVL) could be a better semiconductor pick than Nvidia. Let's see why.
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A Wall Street Analyst Believes This Semiconductor Stock Is Better Than Nvidia, and It Could Jump an Impressive 71%