6 AI Power Play Stocks

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6 AI Power Play Stocks

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As the AI revolution takes hold in 2024, several companies are emerging as potential winners. Whether it’s powering data centers or driving the next wave of AI innovation, these stocks mentioned by Zacks Investment Research experts are well-positioned to benefit from the rapid growth in artificial intelligence. Let’s dive in and explore the key players in the AI space!

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6 AI Power Play Stocks

Nvidia (NVDA): The GPU Powerhouse

• Leading AI Hardware: Nvidia’s GPUs are essential for AI tasks, making it a key player in this revolution.

• Unstoppable Demand: Nvidia’s DGX systems are used by companies like Microsoft and Meta, fueling massive revenue growth.

• Trillion-Dollar Opportunity: CEO Jensen Huang projects Nvidia’s total addressable market will hit $1 trillion by 2030.

• Data Center Domination: Nvidia is poised to replace CPU-driven data centers with advanced GPU technology.

• Buy on Dips: Despite volatility, Nvidia’s stock remains a top pick for long-term AI growth.

AI Power Play: Nvidia’s hardware is critical to AI’s future, and its potential for revenue growth makes it a must-watch stock.

AMD (AMD): Nvidia’s Top Rival

• Expanding AI Presence: AMD’s MI300 GPU is gaining traction, offering competition to Nvidia in the AI hardware space.

• Strategic Acquisitions: AMD’s $4.9 billion acquisition of ZT Systems enhances its data center capabilities.

• Undervalued Play: AMD offers a more affordable entry point than Nvidia, with strong growth potential.

• Talent-Driven Strategy: AMD’s recent acquisition focuses on acquiring top-tier engineering talent to boost its AI footprint.

• Data Center Growth: As AI demand rises, AMD’s competitive GPU offerings will help it secure a larger share of the market.

AI Power Play: With its growing market share and strategic moves, AMD is a solid choice for investors looking for a value-driven AI opportunity.

Oracle (ORCL): The Cloud AI Leader

• Massive Data Center Expansion: Oracle plans to build 1,000–2,000 new data centers in the next decade, up from its current 162.

• Cloud Agnostic: Oracle provides cloud and data center services to multiple industries, ensuring consistent revenue streams.

• Strategic Partnerships: Oracle’s close relationship with Nvidia positions it as a top player in AI-driven cloud services.

• Earnings Growth: Oracle’s earnings are expected to grow 10% this year and another 13% next year, driven by its AI initiatives.

• Reasonable Valuation: Trading at 26x earnings, Oracle remains a solid investment with long-term AI growth potential.

AI Power Play: Oracle’s aggressive data center expansion and cloud dominance make it a strong contender in the AI space.

Super Micro Computer (SMCI): The Infrastructure Star

• Nvidia Partnership: Super Micro works directly with Nvidia to supply AI-specific infrastructure, driving significant revenue growth.

• Surging Demand: The company has seen massive growth as it supplies servers for AI workloads.

• Expansion Challenges: Although Super Micro is experiencing growing pains, its position in the AI supply chain ensures long-term success.

• Capital Raises: The company’s recent secondary offering boosts its ability to scale operations and meet demand.

• Leader in Custom AI Systems: Super Micro is perfectly positioned to capitalize on the growing need for custom AI infrastructure.

AI Power Play: As a critical player in the AI hardware supply chain, Super Micro offers a unique investment opportunity.

Modine Manufacturing (MOD): The AI Cooling Specialist

• Thermal Management Expertise: Modine is an industry leader in providing cooling solutions for AI-powered data centers.

• AI Revenue Growth: Modine projects that AI-related cooling will make up 30% of its revenue by 2027, up from 12% today.

• Liquid Cooling Technology: The company’s acquisition of a liquid cooling provider positions it well for the future of high-heat AI infrastructure.

• Partnerships with Major Players: Modine’s strong relationships with companies building data centers ensure stable growth.

• Solid Earnings Outlook: Modine is expected to grow earnings by 45% this year, with even more upside expected as AI infrastructure grows.

AI Power Play: Modine’s expertise in cooling cutting-edge AI systems positions it for significant growth in the AI data center market.

Vertiv Holdings (VRT): The Data Center Backbone

• Essential Infrastructure Provider: Vertiv specializes in the power and cooling systems needed to support AI-driven data centers.

• Data Center Demand Surge: With thousands of new data centers projected over the next decade, Vertiv is in a prime position to benefit.

• Earnings Growth: Analysts expect Vertiv’s earnings to grow 27% next year, driven by AI and cloud infrastructure expansion.

• Undervalued Growth Stock: Vertiv offers strong earnings growth at a reasonable valuation, making it an attractive buy for AI-focused investors.

• Diverse Product Offerings: Vertiv’s solutions for power, cooling, and backup systems ensure it captures a large share of the AI infrastructure market.

AI Power Play: Vertiv is a key player in the AI infrastructure space, making it an essential pick for long-term growth.

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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