Nvidia (NASDAQ: NVDA) first disclosed a stake in fellow semiconductor company Arm Holdings (NASDAQ: ARM) in the fourth quarter of 2023. The position was valued at $147 million at the time, but a recently filed Form 13F shows the position is now worth more than $280 million and accounts for about 65% of Nvidia's $433 million stock portfolio.

Artificial intelligence (AI) has turned out to be one of the key reasons behind the healthy growth of the semiconductor industry. The proliferation of this technology has driven an increase in demand for multiple types of chips ranging from application-specific integrated circuits (ASICs) to processors to memory.

The AI boom still has a long way to go, and any of these three stocks offer a great way to invest in the long-term potential.

Despite playing active and lucrative parts in the artificial intelligence (AI) boom, Advanced Micro Devices (NASDAQ: AMD) and Micron Technology (NASDAQ: MU) are trading more than 30% below their peak prices.

Investors looking to buy a potential AI winner trading at a reasonable valuation should consider taking a closer look at this company.

Some investors might be reluctant to chase those breakneck gains, but plenty of overlooked AI stocks could still go parabolic in the future. Let's take a look at three stocks that fit this description: Innodata (NASDAQ: INOD), MicroStrategy (NASDAQ: MSTR), and Lumen Technologies (NYSE: LUMN).