Investors are selling Nvidia shares and moving to AI stocks like Super Micro Computer and Microsoft

From Nasdaq: 2024-09-21 04:33:00

Wall Street is enamored with the artificial intelligence (AI) trend, with PwC analysts predicting a $15.7 trillion boost to the global economy by 2030. Semiconductor giant Nvidia’s shares have soared over 430% in the last three years. However, challenges like competition and regulatory risks may impact future share prices. Billionaire investors are diversifying into more reasonable AI stocks like Super Micro Computer and Microsoft.

Super Micro Computer, a leading server and storage solutions provider, has seen its shares rise by 1,110% in the past three years. Despite some recent setbacks, including delayed filings and negative reports, the demand for its AI-optimized infrastructure remains strong. Bank of America predicts 50% growth in the AI server market, with Supermicro expected to grow its market share significantly by 2026.

Microsoft, a favorite pick among billionaire investors, has shown strong performance in 2024. While Azure cloud computing faced growth constraints last quarter, the company expects to reaccelerate growth with increased AI capacity investments. Microsoft’s diverse offerings in cloud computing, AI, cybersecurity, and gaming make it an attractive investment opportunity for retail investors looking to capitalize on the tech giant’s growth prospects.



Read more at Nasdaq: Move Over, Nvidia: Billionaires Are Selling Its Shares and Buying Up These 2 Artificial Intelligence (AI) Stocks Instead