Nvidia (NVDA) plans to report earnings after the bell to give investors another look at the status of its AI spending. The company’s stock price has already risen nearly 200% this year, and more than 2,600% in the past five years as the company’s revenue soared as demand for its AI chips soared.
At a media roundtable on Wednesday, David Kostin, chief U.S. equity strategist at Goldman Sachs, said it may be time for investors to look elsewhere to benefit from the AI boom. insisted. Kostin said Nvidia’s rise was “step one” in the AI trade. Kostin said “AI infrastructure” deals, or companies helping to drive the AI boom and spending on AI chips to operate new servers, are also already taking off, and in some cases with expected benefits. It is said that the growth has exceeded that of the previous year.
But stocks in Goldman’s AI Profit group haven’t seen a similar reaction. Kostin said the group could potentially benefit from AI overall without having to spend as much on expensive AI hardware.
This group includes stocks such as Uber (UBER), Adobe (ADBE), Mastercard (MA), and Salesforce (CRM).
“For our revenue group of AI-enabled companies, stock price performance is essentially in line with earnings growth,” Kostin said. “Therefore, our analysis suggests that these stocks have multiple expansion potential.”
