Forget NVIDIA Stock: These AI Shares are Going Parabolic This Year

Key Insights

• NVIDIA stock has underperformed the broader market this year.
• Bloom Energy stock has soared after extending its deal with Oracle.
• Intel stock soared after linking partnerships with companies like Tesla and Google.

NVIDIA stock price has underperformed the broader financial market, falling 10% from its high last year. Still, some more AI shares are thriving despite the ongoing NVDA weakness. Some of the top names are companies like Intel (INTC), Lumentum (LITE), and Bloom Energy (BE).

Intel Stock is Soaring After Making Major Announcements

Intel, a company that was left for the dead a few months ago, has recently woken up and surged to a record high. The stock has soared in the last three consecutive weeks and is trading to the highest point on record.

It has jumped by 275% from its lowest level last year, with its market capitalization rising by over $200 billion.

The surge partly stems from actions by the Donald Trump administration. Softbank and NVIDIA also fueled momentum by taking a stake last year. The government has now gained over $30 billion in paper value.

Most recently, the stock jumped after the company agreed to repurchase a major fabrication plant in Ireland from Apollo Global Management. This purchase signaled to investors that its turnaround strategy is underway.

Additionally, the company announced that it will be a key participant in Elon Musk’s Terafab project. It aims to build chips for companies like Tesla and SpaceX.

And last week, Google announced that it would use its Xeon chips for its data centers. Intel’s business declined last year. Analysts believe it has bottomed and is poised for a strong comeback.

Still, there is a risk that the stock has become highly overbought, with the Relative Strength Index (RSI) hitting 75. Therefore, there is a risk that it may resume the downward trend in the near term.

Lumentum Stock Has Soared After NVIDIA’s Investment

Lumentum is another top AI stock that has gone parabolic this year. It has jumped by over 2,752% from its lowest level last year.

The surge picked up speed earlier this year. NVIDIA fueled momentum with a $2 billion investment, betting on more growth.

Lumentum’s surge comes as companies keep investing in data centers. Top U.S. hyperscalers expect massive spending. They predict over $650 billion this year.

The company is a major player in the industry, where it offers several solutions in optics and photonics technologies.

Analysts are highly optimistic that Lumentum’s business will continue growing in the coming years as data center spending continues.

The average estimate among analysts is that its revenue will jump by 77% this year to $2.92 billion. It will then experience another 70% annual growth rate next year to $4.98 billion.

Bloom Energy is Soaring After Expanding its Deal With Oracle

Bloom Energy stands out as a leading provider of on-site energy services. It supports large companies across sectors like logistics and manufacturing.

The firm helps businesses manage reliable and sustainable power directly at their facilities. Its stock has jumped by over 2,075% from its lowest level last year.

The company has become a popular name in the data center industry. There, it is providing energy solutions to customers.

In a statement on Monday, Bloom Energy announced that it expanded its deal with Oracle. It is set to make millions of dollars over the years.

Analysts expect the company’s revenue growth to continue growing as more companies leverage its solutions in the data center industry. The average estimate is that its revenue will rise by 57% this year, followed by 55% next year to $4.96 billion.

Other Top AI Companies are Beating NVIDIA Stock

Many other companies are beating NVIDIA stock this year. SanDisk’s stock has jumped by 290% this year. However, Western Digital and Seagate Technology rose by 97% and 83%, respectively.

This surge happened as demand for memory chips continued rising, which has pushed the prices higher.

Other top gainers have outperformed the NVIDIA stock. Vertiv, Lam Research, Dell, and Applied Materials each jumped more than 85%. This highlights strong momentum across multiple tech players.

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