Artificial intelligence (AI) has seized Wall Street’s attention, with companies increasingly raving about the technology and buoying investor sentiment.
The impressive quarterly performance of NVIDIA NVDA over the past year has further stoked the excitement, as NVIDIA demonstrates the sizzling demand for its AI chips.
Exponential AI Growth
Diving deeper into the AI landscape beyond NVIDIA, investors have several other options for AI exposure, such as Vertiv VRT, Arista Networks ANET, and IBM IBM.
Arista Networks Surges
Arista Networks’ shares have enjoyed a substantial boost from the AI wave, surging nearly 120% in the last year. The company stands out as a leader in data-driven, client-to-cloud networking for large data centers, campus, and routing environments.
Analysts have significantly raised their fiscal year expectations, with the $6.55 Zacks Consensus EPS Estimate up by 25% in the past year, pointing to 43% year-over-year growth.
Vertiv’s Striking Presence
Vertiv, a global leader in designing, building, and servicing critical infrastructure that powers essential applications for data centers, has seen a substantial uptick in analyst expectations. The stock has been propelled to a Zacks Rank #1 (Strong Buy).
The company’s latest quarterly results were notably robust, with healthy end markets and momentum prompting an upward revision of its FY23 guidance across all metrics.
IBM’s Drive
IBM’s recent quarterly results impressed the market, triggering a significant post-earnings surge in its shares. The company surpassed the Zacks Consensus EPS Estimate by 2.4% and reported sales modestly above expectations.
Besides AI exposure, IBM also offers a healthy dividend, yielding a substantial 3.8% annually and holding an 0.8% five-year annualized dividend growth rate. It is a member of the elite Dividend Aristocrats group.
The AI Frenzy
The fervor around AI continues to dominate the headlines, with companies increasingly endorsing the technology. It’s not just NVIDIA enjoying the tailwinds, but also Vertiv VRT, Arista Networks ANET, and IBM IBM.
Furthermore, all three stocks have a favorable Zacks Rank, underlining the optimism among analysts about the potential of AI.
Source: Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
