These 5 chip stocks are set to be the big winners of Amazon's latest AI push, BofA says

• Bank of America thinks the AWS re:Invent event is another sign there's no AI bubble just yet.
• Analysts highlighted Amazon's latest AI push and laid out five other stocks it thinks will benefit.
• The list of top AI stocks to buy includes Nvidia but also a few lesser known names.

Amazon kicked off December with AWS re:Invent, its technology conference that Bank of America analysts think marks a fresh bull signal in the AI trade, and one that's set to lift a handful of chip stocks higher.

The investment bank laid out its bullish thesis on several tech stocks in the semiconductor space this week, explaining why it thinks a handful of companies will benefit as Amazon doubles down on its AI push.

Nvidia in BofA's least surprising pick to win from more AI spending. The chip king is the most likely beneficiary, particularly given its recent partnership with AWS. Yet, a few other stocks the bank likes are not as well known.

The collaboration between Amazon and Nvidia, revealed at the event, is a multi-year partnership. It centers on the incorporation of Nvidia's NVLink Fusion interconnect technology, which enables strong communication between different AI chips at extremely high bandwidths.

"Our $275 PO is based on 28x CY27E PE ex cash, within NVDA's historical 25x-56x forward year PE range, which we believe is justified by NVDA's leading share in fast-growing AI compute/networking markets," BofA analyst Vivek Arya noted.

The five stocks he sees as likely winners are as follows:

• Nvidia: +34% year-to-date.
• Astera Labs: +23% year-to-date.
• Advanced Micro Devices: +78% year-to-date.
• Marvell Technology: -10% year-to-date.
• Credo Technology Group: +158% year-to-date

Fabless chipmaker Astera Labs dipped on news of the partnership on the concern that NVLink Fusion could replace its own technology.

Arya thinks that the selloff may be premature, though. In his view, demand for various AI chips may increase as Amazon and Nvidia move forward together, indicating that Astera Labs may not end up losing any business.

Another name on the list of top chip stocks is AMD, an Nvidia rival that AWS has been a longtime customer of. Arya noted that while the event didn't include any specific mentions of AMD's AI accelerators, his team expects to see this relationship continue.

"Regardless, AMD continues to believe they have line of sight into several GW scale AI deployments, as per their recent analyst day," the analyst added.

BofA didn't dive deeply into fellow chipmaker Marvel Technology, though it also listed it as a likely beneficiary, citing its vast portfolio of data center networking tools, including connectivity components that play a pivotal role in new AI infrastructure upon which companies like AWS depend.

Credo Technology Group is the final company mentioned by BofA's team list of chip stocks likely to benefit from AWS' AI push.

While Arya's team provided little direct context on the connectivity solutions company, he implied that significant growth in the area of high-speed data-center connectivity may help Credo rise in the coming year.