With Nvidia Corp. delivering yet another impressive set of financial results, it’s time to take a comprehensive view of the artificial intelligence sector to identify which stocks analysts favor the most.
Here’s a selection of analysis covering Nvidia’s NVDA results for its fiscal fourth quarter, addressing concerns regarding the stock’s valuation and providing insights into expectations as the AI expansion progresses.
To screen AI stocks, one typically considers a wide range of companies involved in different aspects of the infrastructure build-out, such as those providing hardware for Nvidia’s graphics processing units, data centers, cloud services, software, and power management.
Our new stock screen starts with examining the holdings of eight exchange-traded funds (ETFs) that track stocks of companies expected to benefit from AI implementation. If an ETF’s portfolio is market-cap weighted, Nvidia is likely to be its largest holding, so we indicate the percentage of each fund’s Nvidia position. For equal-weighted funds or those with capped weightings, periodic rebalancing occurs, potentially adjusting holdings’ weightings due to recent price appreciation until the next rebalance.
By clicking on the ETFs’ tickers, you can access further details, including each fund’s expenses.
Upon aggregating the holdings of the eight ETFs and eliminating duplicates, we compiled a global list of 339 stocks. We then refined this list to include 198 companies with market capitalizations of at least $5 billion and coverage by at least 10 analysts surveyed by FactSet.
Below are the 20 companies that remain, each receiving at least 80% buy or equivalent ratings from analysts and demonstrating the highest 12-month upside potential based on consensus price targets:
- Meituan Class B
- Kuaishou Technology
- Baidu Inc ADR Class A
- Tencent Holdings Ltd.
- Naver Corp
- Renesas Electronics
- Smartsheet Inc. Class A
- Aptiv PLC APTV
- Kanzhun Ltd.
- Infineon Technologies
- Samsung Electronics
ETC.
Feel free to explore further information about these companies and their potential.
If a company appeared on the list under a non-U.S. ticker, where it is locally listed but also has a U.S.-listed American depositary receipt (ADR), we’ve exclusively included the ADR in the table below.
Click on the tickers to access more information about each company, including corporate profiles, price ratios, financials, and estimates.