Shares of Nvidia have risen 280% over the past year thanks to increased sales of its chips that power artificial intelligence applications. However, the Silicon Valley company is not alone in the AI-driven rally. Investors are also putting their money into companies buying these chips, amid expectations that AI will help improve productivity and profitability. CNBC Pro screened for companies that are Nvidia customers, and also have total profits that are highly correlated with the chip giant — in other words, their share prices rise and fall in tandem with Nvidia’s. are Super Micro, Tokyo Electron Device, Meta Platforms, Tata Motors and Mitsui are among the stocks that have seen the most significant gains over the past year. Their share price movements correlate with Nvidia’s stock between 93% and 98% of the time, according to FactSet. According to FactSet, the table above also shows the strength of the financial relationship between AI chip buyers and Nvidia. Microsoft, for example, has a relative rank of No. 1 because it is Nvidia’s largest customer of AI chips. TSMC is at No. 2 because it is Nvidia’s closest contract chip maker. Meta While the drivers of each stock’s rally may be different, Meta revealed earlier this year that it is spending billions of dollars on Nvidia’s popular computer chips, which are at the heart of artificial intelligence research and projects. The owner of Facebook and Instagram needs these heavy-duty chips as it pursues research into artificial general intelligence (AGI), which Chief Executive Mark Zuckerberg has described as a “long-term vision” for the company. Super Micro Similarly, Super Micro, which makes computer servers, has directly benefited from the use of Nvidia’s AI chips in its products. Tech investor Paul Meeks, co-chief investment officer at Harvest Portfolio Management, told CNBC Pro that Super Micro is his favorite alternative AI stock. The stock has gained more than 1000% in the last 12 months. “Supermicro builds custom servers that AI users use, so it uses Nvidia’s chips in its servers and… [Super Micro] People like Microsoft sell their servers, and then they put them in a data center. And so SuperMicro has done a really good job of shifting its focus to AI consumers,” Meeks said. Tokyo Electron Device Tokyo Electron Device is a distributor of Nvidia’s chips in Japan. The country for creative AI deployments. wants to become a major investment destination. And it has relaxed rules that typically increase the risks of copyright infringement in developed markets. Tokyo Electron Device is Japan’s largest chip maker. A subsidiary of equipment maker Tokyo Electron. The company’s shares have risen more than 180 percent in the past 12 months. Mitsui Japanese conglomerate Mitsui is building the Tokyo-1, a supercomputer designed to power AI for the pharmaceutical industry. designed to generate power. The supercomputer will use a number of Nvidia’s most powerful GPUs. The stock is up nearly 60 percent in the past 12 months. — CNBC’s Jonathan Weinen and Vision Tan report Did you cooperate?
