3 Artificial Intelligence (AI) Stocks That Wall Street Thinks Will Surpass Nvidia in the Next Twelve Months

Analysts are bullish on two of Nvidia’s rivals and a leader in a growing AI software market.

Children have been playing ‘King of the Hill’ for years. The aim of the game is for one player to try to stay on top of the hill while other players try to take their place.

Companies also play this game. And in the field of artificial intelligence (AI) Nvidia (NVDA -10.01%) reigns as king. So far, no rival has managed to knock the chipmaker from its spot at the top.

However, Nvidia may not be the best AI stock to own in the short term. Here are three AI stocks that Wall Street thinks will beat Nvidia over the next twelve months.

1. Advanced micro devices

Advanced micro devices (AMD -5.44%) is one of Nvidia’s biggest rivals. It lags far behind Nvidia in the AI ​​chip market. While AMD shares have soared over the past twelve months, Nvidia has outperformed by a wide margin.

However, Wall Street thinks this could change. The consensus 12-month price target for AMD reflects nearly 16% upside potential. That’s a much more optimistic outlook than the expected sub-11% gain implied by the average analyst price target for Nvidia.

Why do many analysts prefer AMD over Nvidia in the coming year? Much of their optimism stems from AMD’s introduction of its new AI chips. In December, AMD rolled out its Instinct MI300X chip. Tech giants included Metaplatforms, MicrosoftAnd Oracle planning to use this new chip. A few days ago, AMD also unveiled its Ryzen Pro AI chips for desktops and laptops. The company has big hopes for the AI ​​PC market.

2. Intel

Intel (INTC -2.40%) was once the undisputed king of the global chip market. However, technological changes and some bad decisions by the company have changed the game. Intel’s modest gains over the past twelve months reflect the new reality.

However, analysts expect Intel’s prospects to improve. The average twelve-month price target for the stock is 18% above the current share price. One particularly optimistic analyst predicts that Intel could rise nearly 80%.

It’s not shocking that many Wall Street firms have recently fallen in love with Intel. Earlier this month, the company introduced its Gaudi 3 AI accelerator. Intel claimed the chip delivered on average 50% better inference and 40% better power efficiency than Nvidia’s flagship H100 GPU – but “at a fraction of the cost.”

3. UiPath

Unlike AMD and Intel, UiPath (PATH -1.52%) is not a direct competitor of Nvidia. Instead, the company is a leader in the robotic process automation (RPA) market. UiPath uses AI to automate a wide range of online tasks. Its strategic partners feature a “who’s who” of top technology consultants, including AccentureDeloitte, and IBM.

UiPath shares have retreated significantly after posting huge gains in recent months. However, Wall Street expects a big recovery. The average 12-month price target for the stock reflects an upside potential of 45%. Even the most pessimistic analyst questioned by LSEG thinks UiPath shares could rise 24% over the next twelve months.

There are several reasons why analysts like UiPath. The company’s revenue is growing rapidly: 31% year-over-year in the fourth quarter of 2023. UiPath recently achieved its first profitable quarter since its 2021 IPO.

Is Wall Street right about these AI stocks?

We’ll have to wait 12 months to see if Nvidia, AMD, Intel and UiPath will post profits anywhere close to analyst price targets. A lot can happen in the short term that will help or hurt these companies.

However, I think Wall Street’s bullish views on these AI stocks are justified in the long term. Nvidia, AMD and Intel should have huge opportunities with the rising demand for AI chips. UiPath should benefit from the growing adoption of AI-powered process automation. I’m not sure which of these stocks will be the “King of the Hill” next year or ten years from now, but I suspect they will all be solid winners.

Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Keith Speights holds positions at Meta Platforms and Microsoft. The Motley Fool holds positions in and recommends Accenture Plc, Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, Oracle, and UiPath. The Motley Fool recommends Intel and International Business Machines and recommends the following options: long January 2025 $290 calls on Accenture Plc, long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short January 2025 $310 calls on Accenture Plc , short January 2026 calls on Microsoft for $405, and in May 2024 calls on Intel for $47. The Motley Fool has a disclosure policy.