2 AI Stocks Billionaire Money Managers Are Choosing Over Nvidia

In the rapidly evolving landscape of artificial intelligence (AI), Nvidia has long been a dominant player. However, some billionaire money managers are opting for alternative AI stocks, citing valuation concerns and competitive threats. This article explores two AI stocks that have caught the attention of these influential investors.


1. **AMD (Advanced Micro Devices)**
- Market Share: AMD has been gaining market share in the GPU and CPU markets, challenging Nvidia's dominance.
- Growth Potential: AMD's recent product launches, such as the Ryzen 7000 series and Radeon RX 7000 series GPUs, have received positive reviews, indicating strong growth potential.
- Profitability: AMD's gross margins have been increasing, reaching 47% in Q2 2024, compared to Nvidia's 76%.
- Risks: AMD faces intense competition from Intel and Nvidia, as well as potential supply chain disruptions.


2. **Graphcore**
- Market Share: Graphcore is a smaller player in the AI hardware market but has gained traction with its Intelligence Processing Unit (IPU) technology.
- Growth Potential: Graphcore's IPU technology is designed for AI and machine learning tasks, positioning the company well for future growth.
- Profitability: As a smaller company, Graphcore is not yet profitable, but its revenue has been growing rapidly.
- Risks: Graphcore faces competition from established players like Nvidia and AMD, as well as the risk of technological obsolescence.


In conclusion, while Nvidia remains a strong player in the AI hardware market, alternative AI stocks like AMD and Graphcore offer compelling growth prospects and may be more attractive to investors seeking better valuations or diversified portfolios. As the AI landscape continues to evolve, it is essential to monitor these companies' progress and assess their risks and challenges.