Top AI Growth Stocks on Nasdaq That Wall Street Favors
nvidia
| Source: The Motley Fool on MSN | Original article
Wall Street favors two AI growth stocks on Nasdaq. Analysts unanimously recommend them as buys.
Wall Street analysts are overwhelmingly bullish on two artificial intelligence (AI) stocks listed on the Nasdaq, citing their immense growth potential. Applied Digital is expanding its operations with four new data centers, expecting substantial profits in the coming years. Meanwhile, Nvidia's stock is considered undervalued, making it an attractive buy.
The enthusiasm for these AI stocks is significant, given the recent correction in the Nasdaq Composite. As the first-quarter earnings season gains momentum, the robust demand for AI infrastructure, as indicated by recent earnings reports from ASML and Taiwan Semiconductor Manufacturing, is expected to benefit Nasdaq-traded AI stocks. The dependence of some AI companies on a few major customers, such as Microsoft's reliance on OpenAI, is a concern, but the rapid growth of AI leaders like OpenAI is mitigating this risk.
As investors look to capitalize on the AI growth wave, they should watch for earnings reports from key players in the sector. The performance of Applied Digital and Nvidia will be closely monitored, as will the progress of other AI stocks, such as Lumentum Holdings, which provides critical components for AI data centers. With the Nasdaq hitting new highs, the AI growth story is likely to continue unfolding, driven by increasing demand for AI infrastructure and innovation.
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