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Exploring Stocks Similar to NVIDIA: Investment Opportunities with Detailed Financial Analysis
Feb 10, 2025 3:13 PM - Sanzhi Kobzhan
Image credit: stocks similar to NVDA
Understanding Key Metrics: financial health and future growth potential.
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Piotroski Score: This score, ranging from 0 to 9, assesses a company's financial strength based on nine criteria related to profitability, leverage, liquidity, and operating efficiency. A higher score indicates better financial health, making it a valuable tool for value investors. To extract the Piotroski score for selected stocks, we will be using the Financial Modeling Prep Financial Score API endpoint.
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Consensus Target Price: An average of price targets set by analysts, providing insight into expected future stock prices. To extract the Consensus Target Price for selected stocks, we will be using the Financial Modeling Prep Price Target Consensus API endpoint.
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Growth Potential: The percentage difference between the current market price and the consensus target price, showcasing potential stock appreciation.
Finding great investment opportunities.
Now let's dive deeper into some of the stocks similar to NVDA, and I will explain why they can be good stocks to consider now.
1. Advanced Micro Devices (AMD)
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Piotroski Score: 8 (Strong Financial Health)
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Consensus Target Price: $171.27
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Current Market Price: $150
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Growth Potential: 14.18%
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Growth in AI and Gaming: AMD has been expanding its footprint in high-performance computing and AI, directly competing with NVIDIA in these lucrative markets.
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Leadership: Under CEO Lisa Su, AMD has seen significant strategic shifts, capturing market share in CPUs and GPUs.
2. Taiwan Semiconductor Manufacturing Company (TSM)
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Piotroski Score: 8 (Strong Financial Health)
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Consensus Target Price: $183.75
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Current Market Price: $160
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Growth Potential: 14.84%
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Semiconductor Backbone: As the largest foundry, TSM's growth is tied to the success of tech giants, including NVIDIA, ensuring steady demand.
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Technological Edge: Plans for 2nm technology production keep it ahead in semiconductor manufacturing.
3. Micron Technology (MU)
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Piotroski Score: 6 (Moderate Financial Health)
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Consensus Target Price: $125.86
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Current Market Price: $110
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Growth Potential: 14.42%
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Memory Market Leader: Micron's focus on memory solutions positions it to benefit from the data explosion in AI and cloud computing.
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Recovery Outlook: The memory market's cyclical nature suggests potential for significant recovery, with Micron at the forefront.
4. ASML Holding (ASML)
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Piotroski Score: 8 (Strong Financial Health)
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Consensus Target Price: $943
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Current Market Price: $850
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Growth Potential: 10.94%
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EUV Lithography Monopoly: ASML's unique technology is vital for producing advanced chips, making it indispensable.
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Global Reach: Its service to a wide array of clients worldwide provides stability and growth potential.
5. Broadcom (AVGO)
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Piotroski Score: 4 (Weaker Financial Health)
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Consensus Target Price: $214.25
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Current Market Price: $200
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Growth Potential: 7.13%
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Diversified Portfolio: Broadcom's revenue from both hardware and software, including its VMware acquisition, offers multiple growth avenues.
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Acquisition Strategy: Its history of strategic acquisitions has consistently expanded its market presence and capabilities.
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