Nvidia and Lesser-Known Stocks Poised to Benefit from AI Buildout
-
Nvidia is expected to report another strong quarter, with revenue and earnings well above consensus estimates due to continued high demand for its graphics processing units (GPUs) used in AI.
-
For "AI enablers," portfolio manager Ken Laudan suggests looking at stocks beyond the big tech companies like Nvidia, including network, data storage and power management providers.
-
Laudan highlights Coherent for its optical transceivers used in data centers, Pure Storage for its flash storage arrays displacing spinning hard drives, and Eaton for power management equipment needed to supply electricity for AI infrastructure.
-
Eventually the focus may shift to "AI adapters" - software companies like Adobe and Salesforce that are incorporating AI into their offerings.
-
But for now, companies that enable the AI buildout like Nvidia and Laudan's three picks are poised to benefit from growing AI adoption.