The demand for chips has increased dramatically in recent years as their applications have grown across a variety of industries. This rise in demand can be attributed to rapid technological breakthroughs, particularly in artificial intelligence (AI), self-driving cars, and the Internet of Things.
AI chip major NVIDIA Corp. (NVDA) is popular for its advanced chips that power AI, but its expensive valuation, growing competition, and strict regulations are lowering its appeal amongst investors. Therefore, investors could consider buying fundamentally strong chip stocks SMART Global Holdings, Inc. (SGH), Nikon Corporation (NINOY), and QUALCOMM Incorporated (QCOM) instead of NVDA.
