Most people recognize Nvidia as a frontrunner in the artificial intelligence (AI) chip market. Their graphics processing units (GPUs) dominate the industry, but they’re not the only players out there. While Nvidia certainly seems like a strong investment, there are other chip stocks worth considering, which some investors might be missing out on.
If you’re looking to diversify your chips portfolio, I think these three companies could be good options to explore.
Will AI create the world’s first millionaire? Our team recently discussed a little-known company described as an “essential monopoly” that supplies crucial technology to both Nvidia and Intel. Continued
Micron (NASDAQ:MU) isn’t a rival to Nvidia; in fact, they’re collaborators. GPUs and similar computing devices rely heavily on memory for quick data access, which is where Micron excels as a significant memory chip supplier. However, they’re currently struggling with high demand. During their last earnings call, management revealed they were only operating at about 50 to 66 percent of the capacity needed to satisfy medium-term demand. This is quite a gap, and as data centers continue to grow, this shortage is likely to persist for years.
Consequently, prices for memory chips have surged, which has positively impacted Micron’s sales and profits. Just two quarters ago, Micron reported revenue of $13.6 billion; in the last quarter of the fiscal year 2026, that skyrocketed to $23.9 billion. They’re now projecting revenues of $33.5 billion for the upcoming quarter, highlighting the intense demand versus supply situation.
I think Micron could be a smart stock choice. Right now, memory chips are a vital component in enhancing artificial intelligence capabilities. Micron appears to be well-positioned for growth.
Another player to keep an eye on is Broadcom (NASDAQ:AVGO). Unlike Nvidia, Broadcom doesn’t utilize GPUs but instead creates application-specific integrated circuits (ASICs) tailored for AI operations. Although ASICs themselves aren’t new, their use in AI is gaining more traction lately. Broadcom has landed contracts with major AI hyperscalers, including Alphabet. Their Tensor Processing Units (TPUs) are becoming a popular choice for computing tasks, with many companies either purchasing them directly or leasing them through Google Cloud.
Broadcom’s AI division is expanding rapidly, recently growing by 106% year-over-year to reach $8.4 billion. However, the company sees this as a potential challenge. They aim to surpass $100 billion in revenue by 2027, which would outpace Nvidia’s growth significantly, making Broadcom an attractive alternative.
Amazon (NASDAQ:AMZN) might seem like an odd addition to this list, but it’s a chip company that has largely flown under the radar. Although different from Broadcom, Amazon is involved in designing custom AI chips. These components are playing a key role in the impressive growth of Amazon Web Services (AWS), their cloud computing branch. AWS had its strongest quarter in three years recently, with their custom cloud business surging at triple-digit rates.
While Amazon aims to offer Nvidia GPUs on AWS, they also anticipate that their custom AI chips will capture a significant share of the market, similar to their previous success with cloud CPUs. Recently, they reported that their second- and third-generation Trainium chips have maxed out in capacity, while almost all of the fourth generation due in 18 months is already allocated. This indicates a strong demand for custom AI chips, and there’s ample opportunity for Amazon to grow its AI chip business, potentially boosting AWS revenue and the stock price.
If you’re considering purchasing Micron Technology stock, it’s essential to weigh these points carefully.
