Forget Nvidia – These 3 AI Stocks Are Primed to Dominate the Next Chip War

Nvidia’s AI monopoly is showing cracks. While their GPUs still power most data centers, three under-the-radar players are rewriting the rules—and Wall Street hasn’t fully priced them in yet.

First mover: Cerebras’ wafer-scale chips bypass traditional manufacturing limits, cramming 2.6 trillion transistors onto a single slab of silicon. Then there’s Groq, whose LPUs cut through AI inference bottlenecks like a hot knife through butter. Dark horse? Lightmatter—using actual photons instead of electrons to process neural nets at lightspeed.

Sure, analysts will tell you these are ’speculative plays’ (the same geniuses who missed Bitcoin at $100). But when the next AI infrastructure boom hits, betting against disruption is the real gamble.

DigitalOcean (DOCN)

DigitalOcean (DOCN) stock isn’t talked about as much as other Nvidia rivals, but it still has strong potential. Digital Ocean provides on-demand cloud computing infrastructure to small businesses, developers, and start-ups, and it has recently started offering AI solutions as well. In October, the company released Droplets, an AI infrastructure platform through which customers can rent its cloud platform to train and deploy large language models.

Demand for DigitalOcean’s products was very high on launch, prompting investors to swoop in and send its stock upwards. As a result, DigitalOcean is now investing more money to bolster its AI infrastructure. With past patterns painting a bullish picture, DOCN shares could be very valuable in the next few years, potentially rivaling Nvidia in the AI industry.

Advanced Micro Devices (AMD)

Advanced Micro Devices (AMD) recently finalized its massive $4.9 billion acquisition of ZT Systems. The move shows AMD’s determination to expand its AI chip capabilities amid the ever-increasing demand for AI computing power.

AMD has climbed in the last five years, but nowhere NEAR as much as Nvidia. Although it’s up since 2020, AMD has had a rough last year. Many investors see potential in the company to have a resurgence, especially as AI becomes more important. AMD stock has bullish price projections in the next 12 months. Analysts at CNN, in particular, envision a 107.38% climb in one year to $200, with an ultimate low of $90. With shares currently trading near this low, there is great ROI potential for AMD stock investors who are looking for a cheaper alternative to NVDA.

Intel (INTC)

Lastly, Intel (INTC) has made several bold moves in the last year to help its company rebound. Like AMD, Intel has had a sluggish few years, but has changed things around. With a new CEO and recent layoffs, Intel is going in a new direction. Thus, INTC stock could have the potential to bounce back from its recent struggles.

INTC is nearly even to its starting share value entering 2025. Additionally, CNN says this price is near the bottom of its 200-day moving average, signaling strong potential for investors who buy the dip. Analysts see a 400% surge potential for INTC stock, suggesting holding onto shares.