WallStreetBets Is Buzzing About Chip Stocks: Here's What Traders Are Saying About Nvidia, Arm, Super Micro Computer

Retail investors are buzzing about chip stocks Tuesday as traders on Reddit’s r/WallStreetBets continue to look for AI opportunities.

What WSB Is Watching: Nvidia Corporation NVDA, Arm Holdings Plc ARM and Super Micro Computer, Inc. SMCI are the top three most-mentioned stocks on Reddit’s r/WallStreetBets over the past 24 hours, according to data from Swaggy Stocks.

Nvidia is a long-running favorite on WallStreetBets and the stock remained popular on Tuesday with 1,718 mentions in the last 24 hours. The chipmaker's stock has gained more than 240% over the past 12 months, driven by growth in demand for AI-related technologies. 

Investors may be gearing up for Nvidia's fourth-quarter earnings report, which is set to be released on Feb. 21. The company posted blockbuster third-quarter earnings results and expectations remain high. According to data from Benzinga Pro, analysts expect Nvidia to report earnings of $4.53 per share and revenue of $20.239 billion next week.

Arm Holdings is a close runner-up, sitting just behind Nvidia on the list of most-mentioned stocks with 779 mentions. Arm shares are pulling back Tuesday after rising more than 100% following better-than-expected third-quarter results last week. Several so-called Redditors have compared Arm to Nvidia and may view the company as a more affordable entry into the semiconductor sector. 

"Arm is the next Nvidia, 103% in a week," u/MilesDaisy posted on Monday.

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Super Micro Computer is another chipmaker getting a lot of attention on WallStreetBets this week. Super Micro has a similar profile to Arm, as the stock has climbed nearly 100% since the company reported better-than-expected earnings at the end of January. 

Traders on r/WallStreetBets seem to be skeptical of Super Micro's recent gains, but are pointing to high short interest in the name. 11.97% of shares are currently sold short, according to data from Benzinga Pro. 

"I'm skeptical of this one. As it starts to reach the top, volatility will set in," u/Old-Culture-4511 said in a post.

"This will get smoked eventually. Meanwhile, enjoy the freight train ride up," u/Omgnothingwork replied.

NVDA, ARM, SMCI Price Action: According to Benzinga Pro, Nvidia shares were up 0.15% at $723.58 , Arm Holdings shares were down 17% at $123.33 and Super Micro Computer shares were up 1.7% at $786.15 at the time of publication. 

Image: Sergei Tokmakov from Pixabay