Exploring AI Investment: Top Stocks for Future Growth
Zacks Thematic Investing Screens provides insights into 30 evolving investment themes that are molding the future. Whether you’re drawn to innovative technology, renewable energy, or advancements in healthcare, these themes facilitate your investment in what resonates most with you.
To view our investment themes in detail, please click here >>> Thematic Screens – Zacks Investment Research.
Focus on Artificial Intelligence
Artificial Intelligence (AI) involves technology that allows computers and machines to mimic human intelligence. This technology enables problem-solving and cognitive functions typically associated with human minds.
The AI investment theme includes a variety of companies engaged in different aspects of AI. This ranges from developers of software and hardware that support AI to organizations that apply this technology in areas like automation, diagnostics, and cognitive tasks.
Nvidia: A Leading Choice
Nvidia has emerged as a top choice for investors interested in AI. The company’s Data Center performance has consistently surprised investors, witnessing soaring demand. Currently, Nvidia holds a favorable Zacks Rank #2 (Buy), indicating a positive near-term earnings outlook.
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Nvidia has demonstrated remarkable sales growth. Over the past six periods, the company reported triple-digit year-over-year sales growth in five of them, with only one exception where growth reached 93%.
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Palantir’s Growth Trajectory
Palantir develops software that helps organizations efficiently integrate their data and operations. The company is optimistic about its current fiscal year, with analysts upgrading their earnings expectations significantly over the past year.
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Recently, Palantir reported strong results that exceeded expectations. The company achieved sales of $828 million, a 36% increase year-over-year and a 14% increase sequentially.
Moreover, Palantir secured a record $803 million in U.S. commercial total contract value (TCV), which represents a year-over-year increase of 130% and a sequential rise of 170%. Revenue from both Commercial and Government sectors grew by 64% and 45%, respectively.
Below is a chart detailing the company’s sales on a quarterly basis.
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Broadcom’s Robust Performance
Broadcom is rapidly establishing itself as a key player in the AI sector, as corroborated by its recent quarterly results, which showed strong demand. The company’s fiscal year 2024 concluded with a record annual revenue of $51.6 billion—a 44% increase year-over-year fueled by high demand for its offerings.
The stock holds a Zacks Rank #2 (Buy), and its earnings outlook has become increasingly positive following its latest impressive quarterly results.
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For investors seeking both income and AI exposure, Broadcom presents an enticing opportunity, boasting a 12.3% five-year annualized dividend growth rate.
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Conclusion
Zacks Thematic Screens provides an avenue to explore 30 pressing investment themes. From cutting-edge technology to renewable energy and healthcare, these themes help investors connect with promising ideas.
The analysis of the Zacks Artificial Intelligence Thematic screen highlights notable stocks, including Palantir (PLTR), Nvidia (NVDA), and Broadcom (AVGO).
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NVIDIA Corporation (NVDA): Free Stock Analysis
Broadcom Inc. (AVGO): Free Stock Analysis
Palantir Technologies Inc. (PLTR): Free Stock Analysis
This article was originally published by Zacks Investment Research (zacks.com).
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The views and opinions expressed herein belong to the author and do not necessarily reflect those of Nasdaq, Inc.
