Analysts say there are many stocks besides Nvidia that could still benefit from the artificial intelligence boom. Nvidia’s annual GTC conference, dubbed “AI Woodstock” by Bank of America, will feature CEO Jensen Huang delivering a keynote address on Monday as the ambitious chipmaker focuses on its latest products and announces future developments. Nvidia shares have soared nearly 80% so far this year, but the company has had a tumultuous week as some traders took profits ahead of the meeting. As investors look for artificial intelligence companies beyond Nvidia, CNBC Pro used FactSet data to screen stocks in the technology and semiconductor space that will see significant earnings growth in the future. The criteria we used for selection are as follows: S&P 1500 technology industry with a market capitalization of $1 billion or more Projected EPS growth of more than 35% in 2024 Projected EPS growth of 10% or more in 2025 Advanced Micro Devices, also a global Companies Semiconductor companies like Nvidia remain the artificial intelligence darlings of investors. The stock, which has gained about 30% year to date, rose 2.1% on Friday. Analysts expect earnings per share to grow 39.5% in 2024 and 48.7% in 2025. Citi recently named AMD one of its “favorites” in the semiconductor space, and despite the concerns, Citi believes AMD should continue to trade at a premium to the stock’s lofty valuation. “Clients are excited about Nvidia and AMD’s AI opportunities, positive capex adjustments and various CHIPS Act-subsidized device names, as well as NXP’s resilient automotive business,” Citi analyst Christopher Danely wrote in a note. Company Seagate Technology is also among them. Shares are up 43% over the past year, but are expected to rise less than 1% in 2024. Analysts predict that earnings per share will increase 262% in 2024 from the previous year. Evercore ISI initiated coverage of Seagate on February 27, giving it an outperform rating and a $110 price target, saying the stock is well-positioned to benefit from the cyclical recovery in hyperscalers and as heat Assisted Magnetic Recording (HAMR), the company is likely to see margin expansion as the technology continues to scale. Fabless chip maker SiTime also appears on the screen. 2024 is shaping up to be a tough year for the stock, which is down 31% year-to-date. However, analysts have high expectations for earnings per share growth, predicting that earnings per share will increase by 224.4% annually in 2024. Last month, SiTime reported better-than-expected fourth-quarter revenue and earnings, according to FactSet. Management said on the company’s earnings call that it expects sequential growth in 2024, with the second half of the year to be stronger than the first half. SiTime’s data center business has driven significant growth in its communications and enterprise segments, the company added. Other stocks expected to see big earnings growth in the future include Super Micro Computer, audio and imaging technology developer Dolby Laboratories and Ultra Clean Holdings.
