Nvidia continues to dominate the artificial intelligence market, but a semiconductor company presents itself as a strong alternative. The Motley Fool's Stock Advisor analyst team has identified 10 stocks for investors to consider, with Nvidia not being one of them. The semiconductor company offers a potential alternative for investors looking to diversify their portfolios in the AI market.
Short sellers of Super Micro Computer Inc. reaped a $1.2 billion profit as the company's shares plummeted 20% in a single day, marking their biggest drop since August. Despite this gain, short sellers have incurred approximately $4.8 billion in paper losses over the past year as the stock surged more than 760%. The group remains steadfast in their bets against the company, increasing shares shorted by 12% in the last 30 days. The stock's sharp ascent, reminiscent of meme stock surges, has drawn attention to the influence of the AI wave and the dynamics of options trading.
NVIDIA Corporation (NVDA) shares have nearly tripled year-to-date, driven by unprecedented growth in demand for its data center chips. The Baron Opportunity Fund highlighted NVIDIA as a leading semiconductor company that sells chips and software for accelerated computing and gaming. NVIDIA reported revenue of $13.5 billion in the second quarter and guided for another increase in the third quarter to $16 billion. The company is at the forefront of a new era of computing, with its CEO stating that the world is transitioning from general-purpose computing to accelerated computing and generative AI. NVIDIA is currently in the 17th position on the list of 30 most popular stocks among hedge funds.
Texas Instruments received a Sell rating from Bernstein analyst Stacy Rasgon due to the company's significant long-term investment cycle, leading to a downgrade from Market Perform to Underperform.
Nvidia shares climbed over 3% as two brokerages raised their price targets for the chipmaker ahead of its quarterly earnings report. The company has been benefiting from the rally in technology stocks driven by optimism about artificial intelligence and demand for components used in the technology. Nvidia's stock has gained 9% this week, and analysts expect a 66% surge in quarterly revenue.
