According to CNBC Pro analysis, six artificial intelligence-related stocks tend to react positively to Nvidia’s quarterly results. These stocks include Super Micro Computer, AMD, Marvell Technology, Vertiv, Synopsys, and Japan-listed Advantest Corp. These U.S.-listed stocks have each risen between 6% and 33% in the past following Nvidia’s strong earnings announcements. Analysts expect Nvidia to beat expectations again on Wednesday, with estimates at $5.52 earnings per share. However, the reaction of these AI-related stocks to Nvidia’s earnings this time around is less clear.
Super Micro Computer has been a major beneficiary of Wall Street’s interest in AI investments, with its stock surging over 900% in the past year. The company builds computer servers containing graphics processors designed by Nvidia, and its stock jumped 33% after Nvidia’s last quarterly results. AMD, Nvidia’s biggest competitor, has also seen its shares rise following Nvidia’s earnings announcements. The continued investor interest in companies that design and sell GPUs for AI applications has boosted AMD’s stock, which rose 10.7% after Nvidia’s most recent results and 11.2% a year ago.
Advantest Corp, the world’s largest maker of microchip testers, has also benefited from the AI-fueled rally. The Japan-listed stock has seen a 165% increase since 2023, driven by the release of chatbot ChatGPT. Advantest’s sales to Nvidia make up about 1% of its total revenue, and the stock rose 7.5% after Nvidia’s last quarterly figures and 16.2% after the first quarter of 2023 numbers. The stock is also traded frequently in the United States as American Depositary Receipts (ADRs) on exchanges.
Marvell Technology, Vertiv, and Synopsys are also among the U.S.-listed stocks that tend to react positively to Nvidia’s earnings announcements. These companies operate in the technology sector and have products and services that are related to artificial intelligence. Investors have shown an increased interest in these stocks following the strong performance of Nvidia, as they seek to capitalize on the growth potential of the AI market. As Nvidia continues to lead in the design and sale of GPUs for AI applications, these related stocks are expected to benefit from the company’s success.
Overall, the performance of AI-related stocks following Nvidia’s earnings announcements reflects the broader market trend of increasing interest in artificial intelligence investments. As Nvidia continues to lead in the development of AI chips and technologies, investors are looking to capitalize on the growth potential of the AI market through related companies. The positive reactions of these stocks to Nvidia’s earnings demonstrate the interconnectedness of the technology sector and the opportunities presented by advancements in artificial intelligence.
