While NVIDIA Corporation (NVDA) may not be able to sustain its exceptional run due to macroeconomic hurdles and its elevated valuation, there are definitely opportunities to generate superior returns in the dynamic chip industry landscape. Thus, investors looking to capitalize on the favorable industry trends could consider buying Skyworks Solutions, Inc. (SWKS), ROHM Co., Ltd. (ROHCY), and SMART Global Holdings, Inc. (SGH), which hold the potential to outperform NVDA in the upcoming months.
The United States expands export restrictions on NVDA’s AI chips to some countries in the Middle East beyond China. According to the company, this limitation will affect its A100 and H100 chips designed to speed up machine-learning tasks. A few months ago, NVDA’s stock fell nearly 4% on fears that widening U.S. chip curbs would sap growth in China, its third largest market, and curtail the AI-driven boom in its business.
