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After Nvidia’s latest blowout, here are 20 AI stocks expected to rise as much as 44%

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As data centers and other companies build the AI infrastructure, Nvidia isn’t the only way for investors to ride the long-term growth wave. – MarketWatch photo illustration/iStockphoto

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%

Global X Artificial Intelligence & Technology ETF AIQ

$1,232

Market cap with maximum of 3%

85

2

3.3%

Meta Platforms Inc. META – 3.6%

iShares Robotics & Artificial Intelligence Multisector ETF IRBO

$612

Equal weighting

111

3

1.3%

Arm Holdings PLC ADR ARM – 1.74%

First Trust Nasdaq Artificial Intelligence & Robotics ETF ROBT

$509

Modified weighting based on involvement in AI or robotics

108

34

1.0%

PKSHA Technology Inc. JP:3993 – 3.0%

WisdomTree Artificial Intelligence & Innovation Fund WTAI

$236

Equal weighting

80

9

1.7%

Arm Holdings – 3.00%

Invesco AI & Next Gen Software ETF IGPT

$226

Modified weighting based on exposure to AI-related industries

100

1

10.1%

ROBO Global Artificial Intelligence ETF THNQ

$165

Weighting by score based on AI contribution to sales

62

1

3.0%

Roundhill Generative AI & Technology ETF CHAT

$105

Weighted by exposure score to generative AI and related industries

43

1

7.8%

Sources: FactSet, ETF managers

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

Meituan Class B HK:3690

China

85%

77.00

136.68

44%

AIQ

Kuaishou Technology Class B HK:1024

China

93%

45.55

80.24

43%

IRBO

Baidu Inc ADR Class A BIDU

China

90%

107.22

162.02

34%

AIQ, ROBT, CHAT

Tencent Holdings Ltd. HK:700

China

95%

288.80

425.30

32%

AIQ, IRBO, ROBT, CHAT

Naver Corp. KR:035420

South Korea

81%

202,500.00

279,793.10

28%

ROBT, WTAI, CHAT

Renesas Electronics Corp. JP:6723

Japan

93%

2,429.00

3,345.71

27%

ROBT, IGPT

Smartsheet Inc. Class A SMAR

U.S.

81%

41.46

56.55

27%

AIQ

Aptiv PLC APTV

Ireland

81%

77.63

104.87

26%

ROBT

Kanzhun Ltd. ADR BZ

China

83%

14.81

19.91

26%

AIQ

Infineon Technologies AG XE:IFX

Germany

85%

32.90

44.10

25%

AIQ, IRBO, THNQ

Samsung Electronics Co. KR:005930

South Korea

95%

73,000.00

96,263.63

24%

AIQ, IRBO, ROBT, WTAI

GXO Logistics Inc. GXO

U.S.

82%

53.56

68.76

22%

ROBT

Nanya Technology Corp. TW:2408

Taiwan

92%

67.30

84.85

21%

IGPT

Nvidia Corp. NVDA

U.S.

93%

674.72

832.03

19%

All eight ETFs listed above

Quanta Computer Inc. TW:2382

Taiwan

88%

236.00

290.94

19%

CHAT

Amazon.com Inc. AMZN

U.S.

97%

168.59

207.70

19%

All listed above except BOTZ and IGPT

Delta Electronics Inc. TW:2308

Taiwan

90%

291.00

357.85

19%

ROBT

CyberArk Software Ltd. CYBR

Israel

94%

244.07

298.12

18%

AIQ

Netease Inc. HK:9999

China

95%

171.40

207.49

17%

IRBO

HubSpot Inc. HUBS

U.S.

80%

589.23

698.92

16%

IRBO, IGPT, THNQ

Source: FactSet

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.

Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

Don’t miss: Want your stock picks to beat index funds? Look at companies with one key metric.

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