If Nvidia beats estimates, these 6 AI stocks are bullish
According to CNBC Pro analysis, six artificial intelligence-related stocks tend to react positively to Nvidia’s quarterly results. It comes ahead of Nvidia’s first-quarter earnings this year, which will be announced Wednesday after the market close. Five US-listed stocks – Super Micro Computer, AMD, Marvell Technology, Vertiv and Synopsys – along with Japan-listed Advantest Corp have all jumped between 6% and 33% in the past after Nvidia announced earnings. Bumper. CNBC Pro screened the chip stocks in the MSCI World index that rose in both the fourth quarter of 2023 and the first quarter of 2023. Wall Street analysts expect Nvidia to beat again on Wednesday, with estimates Earnings per share currently stands at $5.52. However, some warn that how AI chip stocks will react during this time remains unclear. Super Micro Computer, a technology infrastructure company, has become one of the biggest winners of Wall Street’s appetite for AI investing. Its shares have risen more than 900% in the past year. The company builds servers containing graphics processing units (GPUs) – AI chips designed by Nvidia. Shares jumped 33% after Nvidia disclosed its most recent quarterly results. It was also up more than 23% a year ago when Nvidia reported first-quarter earnings. Advanced Micro Devices AMD, Nvidia’s biggest competitor, also saw its shares skyrocket following Nvidia’s earnings report. Shares rose 10.7% after Nvidia’s most recent results and 11.2% this time last year. Soaring valuations reflect continued investor appetite for companies that design and sell GPUs for artificial intelligence. Last year, AMD announced a new chip that could compete with Nvidia’s H100, which is currently the standard for AI applications. Analysts also see AMD improving its AI software, eliminating the main reason why Nvidia chips are favored over AMD. Advantest Corp Advantest, the world’s largest maker of microchip testing machines, is also benefiting from the AI-fueled rally. Japan-listed shares have increased 165% since 2023, following the launch of ChatGPT chatbot. The company’s revenue to Nvidia accounts for about 1% of total revenue. Shares rose 7.5% after Nvidia revealed its final quarter numbers and 16.2% after its first quarter 2023 numbers were released. Shares are also regularly traded in the United States over the counter and on exchanges as ADRs. – CNBC’s Kif Leswing and Alex Koller contributed reporting.
