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
boom
has
been


Nvidia.
The
company’s
stock
price
rocketed
234%
as

demand
soared
for
the
chipmaker’s
processors
that
are
designed
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
turn
users’
text-based
prompts
into
pictures,
poems
or
PowerPoint
presentations.

While
Nvidia
sucked
up
the

bulk
of
the
profits
—
net
income
through
the
first
three
quarters
of
the
year
jumped
sixfold
from
2022
—
it
wasn’t
the
only
stock
that
attracted
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
close.
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
ensuring
that
there’s
enough
capacity
going
forward,
investors
are
looking
at
who,
other
than
Nvidia,
stands
to
gain.
The
iShares
Semiconductor
ETF
has
rallied
64%
this
year.
The
data
center
is
another
source
of
optimism,
and
a
few
cloud
service
providers
are
positioned
to
win
business
as
organizations
boost
spending
on
technology
to
help
them
run
generative
AI
services.

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

As
the
company
whose
technology
is
viewed
as
most
likely
to
challenge
Nvidia’s
AI
chip
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
close.

AMD
just
launched
its
MI300X
AI
processors,
pursuing
a
market
for
AI
chips
that
CEO
Lisa
Su
projects
will
climb
to
$400
billion
over
the
next
four
years.


Meta
announced
in
December
its
plans
to
use
the
new
processors,
and
Microsoft
is
also
a
committed
customer.

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

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

The
stock
rose

rose
almost
10%
the
day
after
the
launch.

Since
its
public
market
debut
almost
a
decade
ago,


Arista
has
been
gaining
on


Cisco
in
the
market
for
data
center
networking
gear.
Excitement
around
its
position
in
AI
helped
push
the
stock
up
96%
this
year.

In
October,
Arista
added
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
following
month,
Arista
CEO
Jayshree
Ullal
announced
a
goal
of
$750
million
in
2025
AI
networking
revenue,
prompting
Citi
analysts
to
lift
their
price
target
on
the
stock
to
$300
from
$220.

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

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

For
years,


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

One
key
customer
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
company
is
now
aiming
to
become
part
of
the
fabric
for
running
AI
models
and
ensuring
rapid
response.
In
September,
the
company
announced
a
service
called

Workers
AI,
which
runs
on
Nvidia’s
GPUs
and
will
be
spread
across
100
cities.

“With
a
consumption
pricing
model,
these
services
could
drive
meaningful
upside
to
revenue
as
adoption
ramps
through
2024,”
Morgan
Stanley
analysts,
who
have
the
equivalent
of
a
hold
rating
on
the
stock,
wrote
in
a
November
report.

Cloudflare
shares
have
jumped
87%
so
far
in
2023.

WATCH:

Nvidia
is
‘the
cheapest’
AI
play
out
there,
top
Bernstein
analyst
says

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