The artificial intelligence "rocket engine" has transformed NVIDIA into an investment goldmine.

According to Yahoo Finance data, a $1,000 investment in NVIDIA in 2015 would be worth $349,960 today. The same $1,000 invested in AMD would now be valued at $96,190, while investing in the S&P 500 index would yield only $3,422.

However, if that $1,000 had been invested in then-industry leader Intel (INTC), it would only be worth $1,145 today—this former chip giant has missed the artificial intelligence development wave.

Today, if you have $1,000 to invest in chip stocks, many analysts' top choice remains NVIDIA, which comes as no surprise.

Goldman Sachs analyst James Schneider notes that despite growing discussions about "peak growth concerns," NVIDIA still has room for further upside due to its product leadership, diversified customer base, and "attractive valuation" relative to growth prospects. Goldman Sachs reaffirms its "Buy" rating on NVIDIA with a target price of $185.

Broadcom (AVGO) is another popular recommendation. This California-based chip manufacturer has become a leader in the "custom chip" field for hyperscale technology companies like Google (GOOG) and Meta (META). Schneider states that Broadcom's infrastructure business will continue to generate stable and growing profitability, with AI-related business expected to account for over 40% of the company's revenue by 2026.

Wedbush analyst Matt Bryson tells Yahoo Finance that NVIDIA and Broadcom, whose stock has surged nearly 3,500% over the past decade, have the clearest paths for continued growth.

"NVIDIA will remain the market share leader in AI for the next three to five years, partly due to the competitive moats it has established," he said. "Broadcom will continue to play a key supplier role in foundational chips."

AMD has also captured some market share and become a competitor to NVIDIA in the graphics processing unit (GPU) space. Schneider notes in a recent report that while AMD performs well in traditional computing, its stock upside may be "limited" due to its relatively small market share in AI.

Bryson states: "I think AMD has the greatest growth potential, but at the same time, the risks to that growth potential may also be the greatest."

He mentions that AMD's solutions are closest to NVIDIA's, but the company needs to increase its AI market share to "high single digits" to drive significant stock price appreciation.

Meanwhile, some smaller companies are in an "overlooked" state.

Silicon Motion (SIMO) has quietly emerged as a potential beneficiary in the AI era. The company designs and manufactures controllers for solid-state drives (SSDs), smartphones, and automotive storage devices.

Bryson notes that Silicon Motion's historical stock performance has been more aligned with storage companies, trading at lower valuations than peers like NVIDIA that focus on chip design. However, as it expands into enterprise-grade storage controllers, growth prospects may improve and valuation multiples could rise accordingly.

So far this year, Silicon Motion's stock is up 42%, compared to NVIDIA's 30% gain and the S&P 500's 10% rise.

Another area worth attention is chip design software, dominated by Cadence (CDNS) and Synopsys (SNPS).

Schneider calls Cadence "one of the highest-quality compounding growth companies in our coverage universe." The company benefits from strong demand for custom chip design and growing market demand for intellectual property (IP) solutions. Goldman Sachs reaffirms its "Buy" rating on Cadence with a target price of $380. Schneider notes that as more companies seek custom chips, Cadence is positioned for long-term growth.

However, Schneider also points out potential risks from China export restrictions. For example, NVIDIA and AMD have signed agreements requiring them to remit 15% of their China chip sales to the U.S. government.

Meanwhile, Synopsys is viewed as a key supplier in the design software space. Its growth drivers come from continued customer base expansion and advantages in physical electronic design automation tools. Schneider gives Synopsys a "Buy" rating with a target price of $620, while also mentioning that China-related restrictions could pose potential risks.

Since 2025 began, Cadence and Synopsys stocks have risen 16% and 24%, respectively.