The artificial intelligence industry is booming, and there’s more to it than just Nvidia. As Nvidia’s annual GTC Conference approaches, where CEO Jensen Huang will speak and showcase the latest products, investors are looking for other AI plays in the tech and semiconductor sector.
According to analysts, companies like Advanced Micro Devices (AMD), Seagate Technology, and SiTime are positioned well for significant earnings growth in the future. AMD, a global semiconductor giant, is expected to see a 39.5% increase in EPS for 2024 and a 48.7% jump in 2025. Citi named AMD as one of its “most favored names” in semiconductors.
Seagate Technology, a data storage company, is forecasted to have a 262% EPS growth in 2024 compared to the previous year. Evercore ISI initiated coverage of Seagate with an outperform rating and a $110 price target, citing the company’s potential in the cyclical recovery with hyperscalers.
Despite a rocky start to 2024, SiTime, a fabless chipmaker, is expected to see a 224.4% year-over-year EPS jump in 2024. The company reported strong revenue and earnings in the fourth quarter, with expectations of sequential growth throughout 2024, particularly in the data center business.
Other stocks that analysts have identified as potential high earners in the AI space include Super Micro Computer, Dolby Laboratories, and Ultra Clean Holdings.
As investors seek opportunities beyond Nvidia in the artificial intelligence industry, these companies offer promising growth prospects and are worth keeping an eye on.
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