A recent analysis by CNBC Pro suggests that six AI-related stocks tend to react positively to Nvidia’s quarterly results. This analysis comes ahead of Nvidia’s first-quarter earnings report, set to be released after the market closes on Wednesday. The five U.S.-listed stocks (Super Micro Computer, AMD, Marvell Technology, Vertiv, and Synopsys) along with Japan-listed Advantest Corp. have historically seen increases ranging from 6% to 33% following Nvidia’s strong quarterly performances.
Super Micro Computer, a technology infrastructure company, has been a major beneficiary of the surge in AI investments, with its stock rising over 900% in the past year. The company specializes in building computer servers with graphics processors (GPUs), which are crucial for AI applications. Shares of Super Micro Computer jumped 33% after Nvidia’s last quarterly results and more than 23% after the first-quarter earnings announcement a year ago.
AMD, Nvidia’s main competitor, has also experienced stock price increases following Nvidia’s earnings, with gains of 10.7% and 11.2% after the latest results and the previous year’s first-quarter results, respectively. Analysts believe that the rising valuations of companies like AMD are driven by investors’ interest in GPU manufacturers for AI applications. AMD has even introduced a new chip to rival Nvidia’s H100, the current standard for AI tasks, and is working on improving its AI software to better compete with Nvidia.
Advantest Corp, the world’s largest producer of microchip testers, has also seen significant growth in its stock price, up 165% since 2023. The company’s sales to Nvidia make up about 1% of its total revenue. Advantest’s shares in Japan rose 7.5% after Nvidia’s recent quarterly report and 16.2% after the first quarter of 2023. The stock is actively traded in the U.S. on the exchange over-the-counter and as ADR on stock exchanges.
In anticipation of Nvidia’s upcoming earnings announcement, Wall Street analysts are expecting the tech giant to surpass expectations, with estimates currently standing at $5.52 earnings per share. However, there is some uncertainty about how the AI chip stocks will react this time around, given the constantly evolving landscape of the industry. Investors will be watching closely to see if these AI-related stocks continue their positive trend following Nvidia’s results.
Article Source
https://www.cnbc.com/2024/05/22/nvda-alternatives-if-nvidia-beats-estimates-these-6-ai-stocks-tend-to-rise.html