With Nvidia Corp. reporting another set of amazing numbers, it’s time for a broad look at the artificial-intelligence landscape to see which stocks are most favored by analysts.
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Here’s a sampling of coverage of Nvidia’s NVDA results for its fiscal fourth quarter, along with concerns over the stock’s valuation and what to expect as the AI build-out continues:
AI stock screen
One can screen stocks by sector or industry, but when it comes to artificial intelligence, a broad array of companies are involved in aspects of the infrastructure build-out, including those that provide the hardware needed to support the implementation of Nvidia’s graphics processing units by data centers, along with cloud services, other software and power management.
So our new stock screen begins with the holdings of eight exchange-traded funds that take various approaches to track stocks of companies expected to benefit from AI implementation. If an ETF’s portfolio is weighted by market capitalization, Nvidia is likely to be its largest holding, so the percentage of each fund’s Nvidia position is indicated. Equal-weighted funds (or those with caps on weightings) are rebalanced periodically, so recent price appreciation will increase some holdings’ weightings until the next rebalance.
ETF | Assets ($mil) | ETF weighting | Stocks held | Nvidia portfolio holding ranking | Nvidia portfolio percentage | Top holding if not Nvidia |
Global X Robotics & Artificial Intelligence ETF BOTZ | $2,508 | Market cap | 42 | 1 | 18.9% | |
Click the ETFs’ tickers for more information, including each fund’s expenses.
If we add the eight ETFs’ holdings and remove duplicates, we’re left with a global group of 339 stocks. We narrowed the list to 198 companies that have market capitalizations of at least $5 billion and are covered by at least 10 analysts polled by FactSet.
Here are the 20 remaining companies with at least 80% buy or equivalent ratings among analysts and whose stocks have the highest 12-month upside potential implied by the consensus price targets:
Company | Country | Share buy ratings | Feb. 21 price | Cons. price target | Implied 12-month upside potential | Held by |
If a company made the list under a non-U.S. ticker where it is locally listed but also has a U.S.-listed American depositary receipt, we have only included the ADR in this table.
Click on the tickers for more about each company, including corporate profiles, price ratios, financials and estimates.
Don’t miss: Want your stock picks to beat index funds? Look at companies with one key metric.
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