Nvidia (NASDAQ:NVDA) is still one of the top must-own tech stocks. However, so are many of the top Nvidia partner stocks. Granted, the tech giant ran from a low of about $41 a share to a recent high of $1,164.37. All thanks to the unstoppable demand for artificial intelligence and explosive demand for its graphics processing units (GPUs). But there’s still plenty of upside potential with its 10:1 split nearing.
Using its last traded price of $1,164.37, NVDA will trade at about $116 a share post-split. From there, it could easily see its shares rocket beyond $1,000 again in the next few months. Again, all thanks to a multi-billion-dollar AI boom that’s not slowing any time soon.
However, it’s not just NVDA you’ll want to buy on the next leg up. You’ll also want to own what we’re referring to as Nvidia partner stocks. Here are three that could see considerable upside as they run along with Nvidia.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) rallied from a low of about $29 to a high of nearly $214. Now at $160, I’d use the recent weakness as an opportunity, especially as it tries to take market share from Nvidia. AMD just unveiled its latest AI chips, intensifying that competition.
That includes the Instinct MI325X accelerators, which are planned for availability in the fourth quarter. All as the “race to develop generative artificial intelligence programs has led to towering demand for the advanced chips used in AI data centers able to support these complex applications,” says Reuters.
In addition, the company also introduced an upcoming series of chips titled MI350, which is expected to be available in 2025. AMD expects the MI350 to perform 35 times better in inference, the process of computing generative AI responses, added AMD.
Analysts at Jefferies also initiated coverage of AMD with a buy rating, with a price target of $190 a share. AMD even just replaced Nvidia on the Wolfe Research Alpha List.
Equinix (EQIX)
Data center real estate investment trust (REIT), Equinix (NASDAQ:EQIX) supports the demand of Nvidia’s artificial intelligence platforms.
As noted by Benzinga.com, “Equinix’s global network of interconnected data centers forms the backbone of digital business, enabling seamless data exchange and supporting the high-performance computing demands of NVIDIA’s AI platforms.”
“This strategic partnership not only amplifies Equinix’s service offerings but also aligns its growth trajectory with the rapid advancements in AI, cloud computing, and data analytics spearheaded by NVIDIA,” they added.
After running from a low of about $475 to a high of about $904, the EQIX REIT has since pulled back to $764.68. From here, I’d like to see it retest its prior high of nearly $904, and possibly push well above $1,000 near-term, especially with NVDA demands on the run. Helping, Barclays’ analysts just raised their price target on the REIT to $671 with an equal weight rating.
SoundHound AI (SOUN)
Another beneficiary of the Nvidia partner stocks boom has been SoundHound AI (NASDAQ:SOUN). On news Nvidia invested $3.7 million into the stock, SOUN ran from about $1.65 to a high of $10.25. Now back to $4.93, SOUN is still a hot Nvidia-fueled opportunity.
Helping, analysts at Cantor Fitzgerald just upgraded the artificial intelligence voice and speech recognition stock from an underweight rating, with a price target of $4.90. Plus, many of you may already be interacting with SOUN without knowing it.
Apple (NASDAQ:AAPL), for example, has integrated it into hardware devices. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) uses speech applications with smart home devices. Netflix (NASDAQ:NFLX), Honda (NYSE:HMC), Pandora (OTCMKTS:PANDY), Square (NYSE:SQ), and Mastercard (NYSE:MA) use it, too. Restaurants like Jersey Mike’s, Chipotle (NYSE:CMG), and Papa John’s (NASDAQ:PZZA) are using it, too.
Even better, strong earnings put its AI momentum “front and center,” said Wedbush analysts.
“The company also raised the low-end of its revenue guidance for the full year to $77M, up from $65M, which Wedbush said is indicative that SoundHound is ‘well-positioned’ to capitalize on the demand for AI chatbots as it partners with various companies, including restaurants,” said Wedbush, as quoted by Seeking Alpha.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
