Unmatched growth and innovation make these AI chip stocks the apple of Wall Street’s eye, echoing the financial fervor reminiscent of a gold rush. The most recent chapter in this saga unfolds with Nvidia’s breathtaking performance in the fourth quarter of 2023, showcasing a meteoric rise of 250% in revenues compared to the previous year.

Nvidia: The Undisputed Titan

Nvidia’s hegemony in the AI chip market is unassailable, boasting a lion’s share of over 80%. Surpassing stalwarts like Intel and AMD, Nvidia’s ascent has sent seismic ripples through Wall Street, inciting a ‘FOMO’ AI stock rally. Jensen Huang, the maverick CEO of Nvidia, deems the surge as the tipping point for accelerated computing and generative AI.

This surging demand transcends borders, industries, and companies, embodying a global hunger for AI technologies, painting a landscape reminiscent of a bustling marketplace in full swing.

The fervor surrounding Nvidia has catalyzed a chain reaction, elevating the stock prices of companies in its orbit, such as SoundHound and British chip designer Arm. This tidal wave has not spared AMD, Broadcom, and Marvell Tech, all riding the euphoric swells of the AI FOMO rally.

Prior to Nvidia’s latest earnings report, Goldman Sachs christened Nvidia as “the most important stock on planet Earth,” underscoring its indelible footprint in the AI chip realm.

Broadcom (AVGO): The Rising Star

While not traditionally synonymous with AI chip products, Broadcom, a global tech giant, casts a long shadow in the AI ecosystem through its cutting-edge high-performance computing solutions. The company’s forte lies in networking and connectivity chips vital for processing AI algorithms in data centers and cloud computing realms.

The juxtaposition of Broadcom’s robust AI sector with its more lackluster performance in broadband and storage illuminates the diversified demand landscape across market segments. With a projected mid-to-high single-digit year-over-year growth, 35% of Broadcom’s total semiconductor revenue is poised to stem from AI contributions.

Marvell (MRVL): The Maverick Innovator

Marvell, a formidable player in the semiconductor arena, has etched its name in the annals of AI chip stocks with pioneering processors tailored for AI and machine learning applications. Its advanced chips form the bedrock of data centers, automotive advancements, and carrier infrastructure, streamlining the processing of AI algorithms at lightning speed.

While Marvell basks in the glow of AI-related growth, concerns loom over sagging sales in Carrier, Enterprise Networking, and Consumer divisions, dealing a blow in the April quarter. The future viability of AI-driven sales growth stands as a lingering query in the backdrop.

Riding the AI Wave: Marvell and Nvidia’s Race to Dominate the Market

Marvell Makes Waves in the AI Segment

Optimism abounds among analysts regarding Marvell’s expanding Serviceable Available Market (SAM) in the AI segment. This growth signifies a promising outlook for AI custom silicon programs and hints at potential growth prospects in the near future.

Analysts’ bullish sentiments towards Marvell’s stock for 2024 are underpinned by the company’s robust AI initiatives. Marvell’s AI-generated revenue is anticipated to double once again in the coming year, setting the stage for sustained rapid growth in the years ahead, as proclaimed by the company’s management.

Nvidia’s Ascendancy in the AI Chip Stocks

Undoubtedly, Nvidia (NASDAQ: NVDA) has emerged as a formidable force among AI chip stocks, solidifying its dominance in the AI market. Powered by cutting-edge GPUs and AI platforms, Nvidia stands at the forefront with its A100 and H100 models tailored for deep learning and high-performance computing.

Nvidia’s expansive ecosystem bolsters AI development across diverse sectors, cementing its position as an indisputable market leader in accelerated computing technologies. The tech giant recently provided stellar guidance, reaffirming its sway in the AI market and implementing price hikes for its flagship products.

Nvidia’s triumphs in AI are intricately linked to its prowess in accelerating varied data center workloads. The company’s strategic shift from general-purpose computing to accelerated computing, a market estimated at $1 trillion, is poised to unveil the “AI Foundry” services and “AI Factory” data center concept, unlocking another trillion-dollar opportunity.

According to Stifel analysts, Nvidia’s success in AI stems from its adeptness in accelerating diverse data center workloads at scale.

On the day of this article’s publication, Shane Neagle held no positions, directly or indirectly, on the securities discussed. The views expressed in this article reflect those of the author, adhering to the guidelines of InvestorPlace.com.