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

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, +0.36% 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, -0.43% – 3.6%
iShares Robotics & Artificial Intelligence Multisector ETF IRBO $612 Equal weighting 111 3 1.3% Arm Holdings PLC ADR ARM, +3.74% – 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, +3.68% – 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, +2.19% China 85% 77.00 136.68 44% AIQ
Kuaishou Technology Class B 1024, -0.86% China 93% 45.55 80.24 43% IRBO
Baidu Inc ADR Class A BIDU, +0.70% China 90% 107.22 162.02 34% AIQ, ROBT, CHAT
Tencent Holdings Ltd. 700, -0.21% China 95% 288.80 425.30 32% AIQ, IRBO, ROBT, CHAT
Naver Corp. 035420, -0.74% South Korea 81% 202,500.00 279,793.10 28% ROBT, WTAI, CHAT
Renesas Electronics Corp. 6723, +4.90% Japan 93% 2,429.00 3,345.71 27% ROBT, IGPT
Smartsheet Inc. Class A SMAR, +0.02% U.S. 81% 41.46 56.55 27% AIQ
Aptiv PLC APTV, -0.73% Ireland 81% 77.63 104.87 26% ROBT
Kanzhun Ltd. ADR BZ, -0.20% China 83% 14.81 19.91 26% AIQ
Infineon Technologies AG IFX, -1.52% Germany 85% 32.90 44.10 25% AIQ, IRBO, THNQ
Samsung Electronics Co. 005930, -0.27% South Korea 95% 73,000.00 96,263.63 24% AIQ, IRBO, ROBT, WTAI
GXO Logistics Inc. GXO, +0.87% U.S. 82% 53.56 68.76 22% ROBT
Nanya Technology Corp. 2408, -0.59% Taiwan 92% 67.30 84.85 21% IGPT
Nvidia Corp. NVDA, +0.36% U.S. 93% 674.72 832.03 19% All eight ETFs listed above
Quanta Computer Inc. 2382, -1.03% Taiwan 88% 236.00 290.94 19% CHAT
Amazon.com Inc. AMZN, +0.23% U.S. 97% 168.59 207.70 19% All listed above except BOTZ and IGPT
Delta Electronics Inc. 2308, -0.34% Taiwan 90% 291.00 357.85 19% ROBT
CyberArk Software Ltd. CYBR, +1.84% Israel 94% 244.07 298.12 18% AIQ
Netease Inc. 9999, -0.18% China 95% 171.40 207.49 17% IRBO
HubSpot Inc. HUBS, +0.84% 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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