To The Moon

It's crazy how hot the semiconductor stocks in the US stock market are now! Just take a look at the stock price of $NVIDIA Corp(NVDA)$

With the rise of AI, machine learning and quantum computing, the amount of data used will increase, driving exponential growth in computational power requirements.

While NVIDIA is currently in a dominant position, the market is large enough - expected to reach $1 trillion by 2030 - to accommodate other chip stocks to survive and thrive.

So if you want to magnify your long-term returns by investing in semiconductor stocks, sometimes you have to avoid the high-profile stocks and pick some relatively low-key chip stocks.

1. Advanced Micro Devices

$Advanced Micro Devices(AMD)$ has also been hot these days, with shares surging 127% over the past year to an all-time high of $160. If you want to invest in the "next Nvidia," AMD is the most promising stock candidate.

In the field of AI GPUs, Nvidia has become a major chip supplier, but AMD soon came up with the MI300X, which is enough to compete with the H100. AMD has also entered into partnerships with Microsoft and Meta Platforms, Inc.

In terms of results, the company's Q3 revenue increased 4% year-over-year to $5.8 billion, and future revenue is expected to be record.

2. Taiwan Semiconductor Manufacturing

On January 18, $Taiwan Semiconductor Manufacturing(TSM)$ released Q4 earnings that exceeded expectations and drove the entire semiconductor sector higher.

Specifically, driven by 3 nm technology, the company reported earnings per share of $1.44 on sales of $19.62 billion, while expecting Q1 revenue to be in the range of $18-18.8 billion, above Wall Street expectations of $18.27 billion.

The chipmaker forecasts that its revenue is expected to grow by more than 20% in 2024, thanks to strong demand for high-end AI chips.

3. Marvell Electronic Technology

Shares of $Marvell Technology(MRVL)$ surged 5.7% after TSM released its quarterly results. In this chip race, Marvell is relatively an outsider, but it has a higher beta coefficient, so its stock has more potential for growth than other large-cap semiconductor stocks.

Additionally, compared to other chip stocks, Marvell Technology's stock discount is larger, making it more attractive. The stock is still well below its all-time high, making it a great choice for value-oriented growth investors in the current environment.