There’s no question that Nvidia (NASDAQ: NVDA) has been the flagbearer for the AI boom thus far. Even after the recent pullback, the stock is still up more than 600% since start of 2023, adding trillions in market value along the way.
However, past performance is not a guarantee of future returns, and the AI rally is starting to broaden as investors look for alternatives to Nvidia, which may struggle to get back to its peak this year. One chip stock that looks like it has a good chance of outperforming Nvidia over the rest of the year is Advanced Micro Devices (NASDAQ: AMD), the fabless chip maker best known for its PC CPUs that is now seeing rapid growth from data center GPUs.