Six artificial intelligence-related stocks tend to react positively to Nvidia’s quarterly results, as seen in CNBC Pro analysis. Ahead of Nvidia’s first-quarter earnings this year, five U.S.-listed stocks – Super Micro Computer, AMD, Marvell Technology, Vertiv, and Synopsys – along with Japan-listed Advantest Corp have historically seen their stock prices rise between 6% and 33% following Nvidia’s strong earnings reports. Wall Street analysts are expecting Nvidia to beat estimates again on Wednesday, with earnings per share estimated at $5.52, though there is some uncertainty about how the AI chip stock will react this time.
Super Micro Computer, a tech infrastructure company, has experienced significant growth in stock price, up more than 900% over the past year. The company builds computer servers containing graphics processors (GPUs) – the AI chips designed by Nvidia. Stock prices for Super Micro Computer jumped 33% after Nvidia’s last quarterly results, and also rose by over 23% a year ago when Nvidia reported its first-quarter earnings.
Advanced Micro Devices (AMD), Nvidia’s biggest competitor, has also seen a positive correlation in its stock price with Nvidia’s earnings. After Nvidia’s recent results, AMD’s stock rose by 10.7%, and it saw a similar increase of 11.2% following Nvidia’s first-quarter earnings report last year. The surge in valuations reflects investor interest in companies that design and sell GPUs for artificial intelligence, with AMD competing against Nvidia’s H100 chip for AI applications.
Advantest Corp, the world’s largest maker of microchip testers, has also benefitted from the AI-fueled rally. The Japan-listed stock has experienced a 165% increase since 2023, following the release of chatbot ChatGPT. Sales to Nvidia make up around 1% of Advantest’s total revenue, and the stock saw a 7.5% rise after Nvidia’s last quarterly figures were released and a 16.2% increase after the first quarter of 2023. The stock is also traded frequently in the United States as ADRs.
Overall, the positive reactions of these AI-related stocks to Nvidia’s quarterly results reflect investor optimism in the AI industry and the companies involved in producing AI-related technology. Analysts see potential for further growth in companies like Super Micro Computer, AMD, and Advantest as they continue to innovate and compete in the artificial intelligence market. The upcoming release of Nvidia’s first-quarter earnings will provide further insight into the performance of these stocks, as well as the broader AI sector.
