Investing in the Future: Spotlight on AI Innovators Palantir and Broadcom
Zacks Thematic Screens allows investors to explore 30 exciting investment themes driving the future. From the latest technology breakthroughs to advances in renewable energy and healthcare, these themes can guide you toward impactful investment choices.
For more details on these thematic lists, click here >>> Thematic Screens – Zacks Investment Research.
Today, we will delve deeper into the Artificial Intelligence theme and examine several stocks, including Broadcom (AVGO) and Palantir (PLTR).
Understanding the Role of Artificial Intelligence
Artificial Intelligence, or AI, describes a technology that enables machines to mimic human intelligence and problem-solving skills. AI systems typically function by processing large datasets quickly through sophisticated algorithms. They analyze this data using neural networks to find trends and make predictions.
The Zacks AI thematic screen identifies a variety of companies in the AI sector. These range from those developing software and hardware to those applying AI technology in areas like automation and diagnostics.
For direct access to the Zacks Artificial Intelligence Thematic Screen, click here.
Palantir Shows Strong Momentum
Palantir creates software that helps organizations use their data more effectively, integrating decisions and operations. The company has a positive outlook for the current fiscal year, with analysts raising their earnings forecasts in recent months.
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In its latest earnings report, Palantir exceeded both revenue and earnings expectations while also increasing its sales forecast for the year. Revenue surged 27% compared to the previous year, and adjusted earnings per share (EPS) jumped 200%.
The company’s platform remains appealing, demonstrated by a 41% increase in year-over-year customer growth. During this reporting period, Palantir secured over 27 deals valued at $10 million or more, indicating strong demand.
Below is a chart reflecting the company’s quarterly sales.
Image Source: Zacks Investment Research
Broadcom’s Record AI Revenue Surges
Broadcom is expanding its technology portfolio to strengthen its position in next-generation AI infrastructure. This includes innovative technologies and advanced packaging capabilities for creating high-performance, low-power AI accelerators.
The stock currently holds a favorable Zacks Rank #2 (Buy), with positive earnings projections gaining traction in recent months.
Image Source: Zacks Investment Research
Similar to Palantir, Broadcom reported impressive quarterly results, achieving record AI product revenues of $3.1 billion, a notable outcome that excited investors. The company attributed these results to soaring demand for its AI products, prompting an increase in its sales and adjusted EBITDA guidance for the year.
Analysts now anticipate 43% year-over-year sales growth for AVGO in FY24, underscoring Broadcom’s positive trajectory. The following chart showcases the company’s quarterly sales.
Image Source: Zacks Investment Research
Conclusion: Notable AI Investment Opportunities
Zacks Thematic Screens opens up a world of investment possibilities across various themes. Following our exploration of the Artificial Intelligence theme, both Palantir (PLTR) and Broadcom (AVGO) stand out as marked opportunities.
Expert Picks for Explosive Growth
From a vast selection of stocks, five Zacks experts have each nominated their top picks expected to gain +100% or more in the coming months. Among them, Sheraz Mian, our Director of Research, has selected a standout likely to achieve remarkable returns.
This company targets millennial and Gen Z consumers, reporting nearly $1 billion in revenue last quarter alone. Following a recent dip, it appears to be a prime candidate for investment. Although not every expert pick turns out to be a winner, this one has the potential to match or exceed past Zacks successes, like Nano-X Imaging, which rose by +129.6% in less than nine months.
Free: See Our Top Stock And 4 Runners Up
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
