These players are also benefiting from AI demand.

Nvidia‘s (NVDA 3.55%) dominance in the artificial intelligence (AI) chip market has helped the company’s earnings skyrocket in recent years. The tech giant makes the world’s most powerful graphics processing units (GPUs), which fuel key AI tasks such as the training and inferencing of models. This has prompted investors to flock to Nvidia, pushing the shares to a gain of nearly 600% over the past three years.

In fact, Nvidia’s stock rose so high — well past $900 — that the company recently executed a stock split to bring the price down and make the shares more accessible for employees and investors.

And Nvidia’s growth opportunity isn’t over, as the AI story is just getting started, meaning high demand should continue. Analysts predict the AI market will surpass $1 trillion by the end of the decade.

It’s important to remember, though, that Nvidia isn’t the only company that may benefit from this AI boom. And if you’re looking for a top AI buy right now, other players may offer you a chance for a bigger win — so you might want to forget Nvidia for a moment and check out the following two AI players instead.

Two investors look at something on a phone in a kitchen.

Image source: Getty Images.

1. Intel

Intel (INTC -0.52%) is known for its dominance in central processing units (CPUs), the key processor in computers, but the company fell behind in the race to power AI projects — and this has weighed on stock performance. The shares have dropped more than 45% over the past three years. But two important catalysts could turn things around for Intel, and even send the shares roaring higher.

First, Intel is putting a major focus on AI and recently announced the launch of new game-changing products such as the Xeon 6 processors with Efficient-cores and the Gaudi 3 AI accelerator. These products help data center customers gain in performance and efficiency — while keeping their costs down. The Gaudi 3, for example, is as much as a third lower in cost when compared to the competition. So Intel may be a great option for cost-conscious customers looking for solid performance.

Second, Intel may be on the road to generating significant revenue from making chips for others. The company launched a foundry operation with the goal of becoming the world’s second-biggest foundry by 2030. Initially this involves investment, and earnings gains won’t happen overnight — but this could be worth the wait. Intel already is signing on customers for its processes, and its position as the only close-to-home foundry for North American customers could be a big selling point.

Today, Intel shares trade for about 28x times forward earnings estimates, a bargain for this company with a solid earnings track record and new lasting growth catalysts just ahead.

2. Super Micro Computer

Super Micro Computer (SMCI 0.93%) shares have soared in recent years as the company, much like Nvidia, serves the needs of customers launching AI projects. Supermicro makes the workstations, servers, and full rack scale solutions that populate data centers. The company has been around for more than 30 years, slowly growing revenue — and then, with the AI boom, revenue soared.

Earlier this year, Supermicro reported its first $3 billion quarter — that was the level of revenue the company reported for an entire year as recently as in 2021. So Supermicro has made enormous progress in a short period of time.

Like Nvidia, Supermicro should benefit well into the future as this AI growth story, still in its early days, unfolds. But here’s why it’s an even better buy than the big chip designer. Supermicro actually benefits not only when Nvidia releases new chips but also when other chipmakers like Intel and Advanced Micro Devices do. That’s because Supermicro works hand-in-hand with chip leaders so that it can include their latest products in its equipment for customers.

All of this means that Supermicro benefits from general demand for AI equipment, as well as demand for chips from all the big players. On top of this, Supermicro’s technique of working closely with these companies means it can build equipment quickly — and customers, eager to get projects going, like this speed.

Even after recent gains, Supermicro stock today is trading for 33x forward earnings estimates — a dirt cheap level, considering the company’s growth so far and long-term prospects.

So, yes, Nvidia still is a top stock to buy, but Intel and Supermicro look like even better buying opportunities right now — and ones that could help you greatly benefit from the AI growth story.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool recommends Intel. The Motley Fool has a disclosure policy.

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