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Attention around artificial intelligence has driven chipmaker Nvidia sharply higher in recent years, to the point where it briefly was the worlds most valuable company but AI investors are targeting other stocks, too.

Some hardware-focused companies in the AI supply chain have seen blistering stock price gains in the past 18 months, and the process of implementing AI across large organizations is already driving business for leading software firms.

The hype has drawn comparisons to the dot-com bubble of the late 1990s, when many internet start-ups saw massive, short-lived investment gains before crashing down. But this time, some analysts say, much of the AI interest has been concentrated on a much smaller number of established technology firms, and it is linked to significant corporate spending happening now.

The impact of generative AI is not as broad-based as initially imagined, said Chirag Dekate, a vice president and analyst at Gartner. There are a very specific entities that are providing the foundational technology.

Here are some publicly traded companies riding a wave of artificial intelligence investment.

Co-founded by technology investor Peter Thiel, this company has evolved from an organization doing mostly defense and intelligence work into a data company serving enterprises of all sorts. Under chief executive Alex Karp, the company has built a growing suite of artificial-intelligence offerings.

It is among a growing industry that implements AI technology for large organizations, a sector that also includes C3AI and the consulting firms Deloitte, Accenture and Ernst & Young, according to Dekate.

Palantirs platform examines a companys data and provides examples of how AI can be employed within an organization. Wedbush Securities analyst Dan Ives said he sees Palantir as the golden child of AI because of its emphasis on the practical use of artificial intelligence within large organizations.

Nvidia chips are just the start, but it all comes down to use cases, Ives said.

The contract manufacturing giant has a ubiquitous presence in the global tech industry with its production of computer chips built into consumer products like smartphones and cars, as well as military satellites and weapons systems.

Deepwater Assets Munster says his firm is invested in TSMC, along with Broadcom and Vertiv, as part of a broader play to capitalize on the growth of AI-enabling hardware. A company called Onto Innovation, which handles specialized measurement for chip construction, is also seen as a niche beneficiary.

Hardware is the play right now because were seeing tangible improvements to their business. They are trading at software-like multiples, Munster said. The hardware for this is just getting built.

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It's not just Nvidia: AI interest sends these stocks higher - The Washington Post