Rival Chip Stocks.

$NVIDIA(NVDA.US)$ and $Advanced Micro Devices(AMD.US)$ are established leaders in the semiconductor industry.

Among top chip stocks, Nvidia helps to lead IBD’s Electronics-Semiconductor Fabless industry group. Fabless companies contract with foundries to make the chips they design. Other chip companies own their fabrication plants.

Besides NVDA, fabless chip stocks include Qualcomm, Broadcom (AVGO) and Monolithic Power Systems (MPWR). Amid industry headwinds, the fabless group ranks No. 136 out of 197 industry groups.

For the best returns, investors should focus on companies that are leading the market and their own industry group.