Tech industry darling Nvidia (NASDAQ:NVDA) has taken the market to new highs, and investors who missed out on buying stock ahead of the AI boom have regretted this more than ever. The company can potentially impact several other tech companies and the stock market as a whole. Nvidia recently announced a 10-for-1 stock split to make it easier for investors to own the stock. Once trading at $1,200, the stock is now available for $131. However, besides the artificial intelligence leader, there are several other AI stocks to buy that could benefit from the AI boom and the stock split.
The broader sentiment towards the AI industry is bullish. These companies are already seeing their stocks rally with each quarterly result, and now is the time to load up on them if you want to enjoy more upside. Let’s take a look at the three AI stocks worth buying after Nvidia’s stock split.
AI Stocks to Buy: Oracle (ORCL)
Cloud service provider Oracle (NYSE:ORCL) is one of the fastest-moving stocks. Up 32% year-to-date, the stock is exchanging hands for $138. It is one of the top AI stocks to own amid the Nvidia stock split.
Once popular for database management, Oracle is now expanding its cloud business and has seen an impressive demand. Its cloud infrastructure revenue hit $2 billion, up 42% year-over-year in the recent quarter and the outstanding performance obligations soared 44% and stood at $98 billion. This shows the company’s strength amid the rising competition.
The company is attracting customers and has had two exceptional quarters. It is signing new contracts rapidly and is currently rallying on the deal with OpenAI. The company will run AI workloads on Oracle cloud infrastructure and has another multi-cloud deal with Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) as well. These two deals could be a game-changer for the business.
The stock has already picked momentum and has had an excellent 2024 . I believe Oracle will end the year on a high note, and it has a buy rating from Wall Street with a price target of $145.
Buying ORCL stock looks like a good deal right now.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) is the one stock that soars whenever Nvidia does. If you believe that the AI race will last longer, load up on SMCI stock. The stock is trading at $844 today, up 195% YTD. It is also down from the 52-week high of $1,229.
The company designs and makes high-performance servers for AI and machine learning devices. Running the latest chips requires the right hardware infrastructure, and Super Micro Computer leads the industry here.
It ensures that there is everything to achieve the right balance between the software and hardware components. It has seen explosive growth due to the high AI demand and works with Nvidia to build GPU server systems. The company is expanding its manufacturing capabilities at its global facilities, including California, Taiwan, and Malaysia.
Super Micro Computer reported an impressive quarter. Revenue jumped 200% to $3.9 billion, and EPS jumped 308% to $6.65. There is a lot more upside from the current level as companies and governments are investing heavily in AI. Management is aiming for revenue in the range of $5.1 billion to $5.5 billion for the quarter.
The company could also follow Nvidia’s steps and announce a stock split. Nevertheless, SMCI is one of the best AI stocks to buy, whether it goes for a split or not.
Taiwan Semiconductor Manufacturing (TSMC)
Taiwan Semiconductor (NYSE:TSM) is closely associated with Nvidia and benefits whenever Nvidia soars. Due to its partnership with the company, TSM has seen its value rise over the past year. It is up 55% YTD and is exchanging hands for $921. It manufactures chips for Nvidia and has become a huge asset to its business. As the demand for Nvidia chips soars, TSM will continue rallying.
The company has taken the necessary steps to ensure high client satisfaction and has improved the nanometer size of the chips, going from seven to two nanometers over the past few years. It is known for innovation, timeliness, and high quality. The company has seen its market cap swell and is on its way to an exceptional year.
It reported a 30% jump in the monthly revenue for May, and most of its revenue comes from chips designed using 3nm, 5nm, and 7nm nodes. Sales of these chips are expected to soar throughout 2024, and TSM will manage to beat expectations in the upcoming quarterly results. While the company has suffered due to a dip in the sales of smartphones and personal computers, the sales are expected to rebound this year, which could outpace the revenue estimates.
TSMC is also working on expanding its manufacturing capabilities and has recently opened a new plant in Japan.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.