AI Chip Stocks: Nvidia Near High, Peers at Discounts

Nvidia's stock price has fallen 2.6% below its 52-week high at $230.36, while four of its biggest artificial intelligence (AI) chip peers have significant discounts: Advanced Micro Devices is down 18%, Micron Technology is down 19%, Broadcom is down 28%, and Marvell Technology is down 32%. All five companies benefit from a wave of data center spending, with Nvidia expecting $800 billion in capital expenditures this year and $1.3 trillion by 2027.

Broadcom's CEO Hock Tan aims to double AI revenue to $115 billion next fiscal year and again to $230 billion in 2028. Marvell's latest quarter saw a 46% data center growth, with a raised outlook for the next two years. Despite these positive developments, Broadcom and Marvell have the two deepest discounts.

Nvidia's financials are strong, with revenue up 106% year over year to $96.2 billion in its fiscal second quarter of 2027. Management guided the third quarter to $108 billion, with a 70% growth forecast for 2028. The stock costs about 15 times analysts' estimated earnings.