Key Points
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Nvidia stock is cheap, and it continues to have big opportunities ahead.
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Cerebras has the potential to be a huge winner in inference.
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Intel stock is no longer cheap.
- 10 stocks we like better than Nvidia ›
Chase Coleman III of Tiger Global Management is one of the world’s premier tech investors. In fact, his fund has spawned many other top investors who now run their own funds. During Q2, Coleman was busy, including reducing his stake in Nvidia (NASDAQ: NVDA), while adding a new position in Cerebras Systems (NASDAQ: CBRS) and increasing his holdings in Intel (NASDAQ: INTC).
Let’s take a closer look at these semiconductor stocks and see if investors should be buyers or sellers.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
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Nvidia
While Coleman reduced his stake in Nvidia by about 7%, it remains his third-largest holding. There are many reasons to like the stock here, in my view. First, the company is the dominant chipmaker for AI model training with its graphics processing units (GPUs), and that is unlikely to change anytime soon. Its CUDA software platform, where most foundational AI code has been written, just remains a powerful moat.
Meanwhile, the company has become much more than just a GPU maker. Backed by a strong networking portfolio and other chips, Nvidia is now a complete AI infrastructure player that can provide end-to-end rack-scale solutions for various AI tasks. Its “acquisition” of Groq and its language processing units (LPUs) give it a strong position in the fast-growing inference market, while its custom central processing units (CPUs) set it up well for agentic AI.
Nvidia continues to see explosive growth and has big opportunities still ahead of it, yet the stock trades at a forward P/E of just 17 times fiscal 2028 (ending January 2028) analyst estimates. That makes this a great stock to buy at these levels in my view.
Cerebras
Coleman’s biggest buy in the quarter was Cerebras, as he made the chip company his 12th-largest holding. Cerebras is one of the most intriguing chip stocks in the market.
Similar to Nvidia’s LPUs, Cerebras embeds SRAM (static random-access memory) directly onto its chips, which greatly increases inference speeds. However, SRAM is bulky, and instead of using a small amount like LPUs, it has created massive wafer-sized chips that need special cooling and power management. The result is speeds up to six times faster than LPUs. However, this comes at a cost, and it is generally viewed as a premium solution.
Cerebras has started to become a player at the high-end of the market, and its system is helping power the new ultrafast mode for OpenAI’s GPT-5.6 Sol model. The company has a large commitment in place with the AI model maker that should provide strong growth in the years to come. It also has a deal with Amazon Web Services.
Meanwhile, the company’s partnership with Advanced Micro Devices also looks promising to help push the company’s solution more into the mainstream with a more cost-effective option. Through the partnership, AMD will provide its Helios system to handle the pre-fill phase of inference, while Cerebras’ solution will power the decode phase. The result will be a cheaper, low-latency inference solution that benefits both chipmakers and lets them better compete with Nvidia in this huge and fast-growing market.
Cerebras is a more speculative stock, but the ingredients are in place for it to be a big winner.
Intel
Last quarter, Coleman significantly increased his stake in Intel, making it his 15th-largest holding. The company has been a late AI winner, with the rise of agentic AI leading to a surge in demand for data center CPUs. The company remains the CPU market share leader, so it has seen a nice jump in revenue and an improvement in gross margins.
While Coleman finds the stock attractive, it is not a favorite of mine. The company has been losing share in the server CPU market to AMD, while Arm Holdings has entered the market to add more competition. Meanwhile, it still appears to be trailing in technology and is benefiting more from the high tide raising all ships. On top of that, higher component costs will likely negatively impact sales in its core PC segment, while its foundry business continues to see heavy losses.
The stock is up big over the past year and no longer cheap, and as such, I’d stay on the sidelines.
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Geoffrey Seiler has positions in Advanced Micro Devices and Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Arm Holdings, Intel, and Nvidia. The Motley Fool has a disclosure policy.
