If you invest in artificial intelligence, these 13 stocks should be in your portfolio
Nvidia: Leading the Tech Industry with Stellar Performance
When it comes to portfolio management, Nvidia stands out as one of the top contenders.
Despite its outstanding performance, this tech giant is not the most popular among global institutional investors.
While there are 13 other companies that rank higher in popularity among major investors, none come close to Nvidia’s impressive 197% total return over the past 12 months.
Qualcomm: Riding the AI Wave
Among Nvidia’s top 13 tech stock peers is Qualcomm (US:QCOM), a leading U.S.
chip manufacturer known for its cutting-edge smartphone chips.
Qualcomm is positioned to benefit from the surge in AI investments sparked by Nvidia.
As Qualcomm aims to become a key provider of AI-enabled chips, it is eyeing a significant presence in the PC market, a sector it has long sought to enter.
Global Tech Favorites and Market Dynamics
Alphabet (US:GOOGL), Microsoft (US:MSFT), Meta (US:META), Apple (US:AAPL), and Amazon (US:AMZN) rank higher than Nvidia in terms of institutional investor support.
The most globally favored tech stock among investors is Samsung Electronics (KR:005930), a Korean giant in memory chips and smartphones.
Other Asian IT tech giants like FPT (VN:FPT) and Infosys (IN:500209), along with semiconductor leaders TSMC (TW:2330) and ASE Technology (TW:3711), also attract more investor interest than Nvidia.
ASML (NL:ASML), a Dutch semiconductor equipment manufacturer, is the only European tech company surpassing Nvidia, boasting advanced chip production machinery.
Market Valuations and Considerations
While Nvidia leads in performance, companies like Alibaba (HK:9988) trade at lower valuations despite potential.
Alibaba faces challenges such as government intervention, U.S.
tech restrictions, and competition from emerging retailers.
When looking at key metrics such as P/E ratio, ROIC, and EPS CAGR, Nvidia’s impressive figures highlight its position as a top performer alongside giants like Apple and ASML, shaping the landscape of tech investments.
Source: FactSet, as of July 8, 2024.
Based on projections for the next 12 months.
EPS = Earnings Per Share.
CAGR = Compound Annual Growth Rate.
