If you’re looking for some of the best stocks to park your cash, consider down, but not out tech stocks that could see substantial upside from the artificial intelligence boom.
That includes tech giants like Nvidia (SYM: NVDA).
Between November 2016 and November 2020, NVDA ran from about $1.70, adjusted with stock splits to $13.07. Today, it’s up to $134.70 and we still believe it could rally even higher over the next four years. All thanks to artificial intelligence, data centers and chip demand.
Helping, NVDA is once again being billed as the world’s most valuable company with a current market cap of $3.3 trillion. That’s ahead of Apple’s $3.43 trillion, by the way. Plus, NVDA just joined the Dow Jones Industrial Average, giving Intel the boot. Even better, analysts at Evercore ISI recently raised their price target on NVDA to $150 from $145 with an outperform rating.
Technically, it’s oversold at strong support. From its last traded price of $134.70, we’d like to see NVDA initially retest $150 again shortly.
Advanced Micro Devices (SYM: AMD)
Much like NVDA, Advanced Micro Devices is also benefiting from the surging demand for AI, data centers and chips.
For one, according to Wedbush analyst Dan Ives, there’s the Trump Administration focus on strengthening the U.S. position in artificial intelligence. “We would expect significant AI initiatives from the Beltway within the U.S. that would be a benefit for Microsoft, Amazon, Google, and other tech players,” Ives said, as quoted by Investors.com. “Under a Trump Administration we would expect major AI initiatives within the U.S. government including the Department of Defense that would also be a major tailwind (for) AI players.”
Two, AMD has become ridiculously oversold at a late 2023 low of $119.21. It’s also oversold on RSI, MACD and Williams’ %R. We’d like to see it closer to $145 near term.
Three, the company’s latest generation of AI chips, the MI300, is its fastest ramping product ever. Lisa Su added that AMD’s MI300X chip—which rivals dominant AI chipmaker Nvidia’s H100 is “the most advanced AI accelerator in the industry,” as noted by Time.com.
Related Reading: Why You Shouldn’t Pour All Your Money Into Nvidia
Jeff Brown, who predicted Nvidia’s rise, warns against putting all your money into Nvidia now. His latest AI forecast offers smarter ways to potentially multiply your gains.
