AMD and 3 More Chip Stocks to Watch That Aren’t Nvidia

AMD stock has outperformed Nvidia this year. (Annabelle Chih/Bloomberg)

Nvidia is the kind of chip stocks and the AI trade, but Advanced Micro Devices has been the better performing stock. The charts suggest that can continue heading into AMD earnings Tuesday afternoon.

AMD has a lot to prove. With the stock already up nearly 50% this year, some argue it’s priced for perfection, and technical analysts are eyeing a potential double top near last October’s highs.

But in markets, it isn’t where a stock has been but where it may be going. As the old saying goes, trends in motion are more likely to persist than reverse. Advanced Micro Devices, which was down 2.3% at $172.73 Tuesday, is now outperforming Nvidia across one-month, three-month, and year-to-date time frames. Expect that relationship to continue.

Other chip stocks haven’t done quite as well but could be worth a look. Micron, a key global player in memory and storage technology, has pulled back 17% from its late-June highs but may be finding its footing.

This week’s bounce near $100—a psychologically important round number—successfully retested a prior bull flag breakout, suggesting a potential reversal in the making. A move above $110, which capped price action between last summer and January, would be a strong signal of renewed momentum. Micron was trading down 0.2% at $107.55 on Tuesday.

Traders can look to initiate positions on strength through that level, with an opportunity to add above the $114.99 double bottom trigger. Maintain a bullish stance as long as shares hold above $95.

Astera Labs , the fabless semiconductor firm that made its debut in March 2024, is set to report earnings Tuesday afternoon as well, and momentum is clearly on its side. We spotlighted the name weeks ago, and it hasn’t looked back.

The stock’s explosive 19% surge on July 21 demanded attention, and since then, it’s continued to climb in a steady, bullish grind. Round-number theory was evident in its breakout above a well-formed bull flag, and now it’s eyeing a fresh technical milestone, a potential move through a cup base trigger at $147.46, in a pattern that’s been building since late 2024. The stock was down 0.3% at $137.55 on Tuesday.

While entering ahead of earnings always carries risk, a decisive breakout above the $150 level could open the runway toward $250 by late 2026.

Another strong semiconductor stock: Penguin Solutions, formerly Smart Global Holdings. It has surged 23% year-to-date, edging past the 20% gain logged by the VanEck Semiconductor ETF .

The daily chart tells an intriguing story as a recent attempt to clear a bull flag pivot at $25 stalled, but last Friday’s precision retest of the prior cup base breakout level at $22.77 signals renewed strength and resilience. Penguin Solutions was trading at $23.82 Tuesday.

Last week, the stock demonstrated relative weakness compared with the broader sector’s 1% decline. Looking ahead, the technical setup suggests Penguin Solutions could be on track to challenge the $33 mark by year-end.

Nvidia may get all the attention, but don’t overlook other opportunities.

Write to Doug Busch at douglas.busch@barrons.com