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.
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. 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 3690, |
China | 85% | 77.00 | 136.68 | 44% | AIQ |
|
Kuaishou Technology Class B 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. 700, |
China | 95% | 288.80 | 425.30 | 32% | AIQ, IRBO, ROBT, CHAT |
|
Naver Corp. 035420, |
South Korea | 81% | 202,500.00 | 279,793.10 | 28% | ROBT, WTAI, CHAT |
|
Renesas Electronics Corp. 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 IFX, |
Germany | 85% | 32.90 | 44.10 | 25% | AIQ, IRBO, THNQ |
|
Samsung Electronics Co. 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. 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. 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. 2308, |
Taiwan | 90% | 291.00 | 357.85 | 19% | ROBT |
|
CyberArk Software Ltd. CYBR, |
Israel | 94% | 244.07 | 298.12 | 18% | AIQ |
|
Netease Inc. 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.
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