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3 'Strong Buy' stocks to invest in for the next wave of AI

Artificial intelligence (AI) is revolutionizing various sectors and pushing the stock market to unprecedented heights.The global AI market is ready Over $1 trillion by 2030the enthusiasm surrounding AI is justified.

Nvidia represents the AI ​​investment boom (NVDA), known for its chips that are critical to training and running AI models.But on the other hand NVDA could lead Phase 1 Head of AI Industry, Goldman Sachs Analyst (GS) say there is 3 additional phases An AI boom is on the horizon, and each wave offers unique investment opportunities.

According to Goldman, Phase 2 will include “semiconductor companies, cloud providers, data center REITs, hardware and equipment companies, security software stocks, and utility companies,” many of which include There is still room for significant expansion.

Three companies that Goldman Sachs analysts believe will benefit from a “Phase 2” stage of AI implementation are semiconductor company Monolithic Power; (MPWR)software company Synopsys (SNPS)Data Center REIT American Tower (AMT)all of which have a consensus “Strong Buy” rating on Wall Street.

Stock #1: Monolithic Power System (MPWR)

Monolithic Power Systems, Inc., headquartered in Kirkland, Washington. (MPWR) designs and manufactures integrated power semiconductor solutions and power delivery architectures for the computing and storage, automotive, industrial, communications, and consumer application markets. The current market capitalization is $32.9 billion.

monolithic power stock It is up 38.3% over the past 52 weeks, outperforming the S&P 500 Index. ($SPX) It's up 33.2% over the period. The stock's annual dividend is $4.00 per share, giving it a dividend yield of 0.59%.

www.barchart.com

Monolithic Power addresses power design challenges for AI systems and contributes to AI infrastructure. The company's work in AI hardware power is part of a broader effort to define the AI ​​power ecosystem and support the growth of the AI ​​market.

Last month's price hike for monolithic power was Fourth quarter 2023 revenue exceeded expectations Earnings were $454 million, and adjusted net income was $140.8 million, or $2.88 per share. Management increased total assets by 18.2% year over year to $2.43 billion, while reducing total debt by 1.5% annually to $384.4 million as of December 31, 2023.

Additionally, the company expects sales for the current quarter to be in the range of $437 million to $457 million. Gross margins are stable as revenue improves, and Monolithic Power expects gross margins to be between 55.1% and 55.7% for the current quarter.

The consensus rating for Monolithic Power stock is a Strong Buy. Of the 12 analysts recommending the stock, 9 rate it as a “strong buy,” 2 advise it as a “moderate buy,” and 1 advises it as a “hold.”

of Analyst average price target MPWR’s price is $739.40, indicating a potential upside of 9.9% from current levels. However, the high price target of $830 that KeyBanc set in February suggests the stock could rise as much as 23.3% from current levels.

www.barchart.com

Stock #2: Synopsys (SNPS)

Synopsys, based in Sunnyvale, California, is valued at $91.8 billion. (SNPS) is a software development company that provides tools and services for designing and validating electronic systems. The company is investing heavily in AI and machine learning (ML) to develop new tools that allow designers to automate more of the design process.

Synopsys stock has increased 60.6% over the past 52 weeks, outpacing SPX's gain over this period.

www.barchart.com

In late February, Synopsys reported fiscal 2024 first-quarter revenue of $1.65 billion, up 21% from a year earlier, beating Wall Street's expectations of $1.64 billion. Similarly, first-quarter non-GAAP EPS of $3.56 exceeded expectations due to strong demand for semiconductor research and development despite macro uncertainties.

During the quarter, Synopsys reported positive feedback from pilot participants. Synopsys.ai co-pilotintegrates Microsoft (MSFT) Azure OpenAI accelerates chip design.Along with that First quarter results exceed expectations, the stock soared on the company's strong guidance, driven by demand for its AI products. CEO Sassine Ghazi believes AI will drive customers' investments in silicon and systems and position the company for future growth. The company expects adjusted EPS for the current quarter to be between $3.09 and $3.14.

The consensus for Synopsys stock is a “strong buy” rating. Of the 14 analysts who recommended the stock, 12 rated it a “strong buy,” one rated it a “moderate buy,” and one rated it a “hold.”

of Analyst average price target SNPS is priced at $609, indicating a 2.1% upside potential. However, the high price target of $675 suggests the stock could appreciate up to 13.2% from current levels.

www.barchart.com

Stock #3: American Tower (AMT)

Boston-based American Tower Corporation (AMT)The company, one of the world's largest REITs, is a major player in multi-tenant communications real estate, leasing tower space and providing customized colocation solutions such as in-building systems, distributed antenna systems, and managed rooftops. and facilitate network deployment. The current market capitalization is $90.4 billion.

american tower stock Virtually unchanged over the past 52 weeks. The company's annual dividend is $6.45 per share, giving it a dividend yield of 3.33%.

www.barchart.com

The wireless communications infrastructure company achieved solid growth and profitability in the fourth quarter. Revenue reaches $2.79 billion Adjusted EBITDA margin is 63.2%. Real estate revenue soared to $2.76 billion, and free cash flow rose 17.7% year over year to $611 million. Funds under management of $2.29 per share easily beat consensus estimates.

Advances in AI are expected to significantly increase demand for American Tower's assets. Data center revenue in 2024 is projected to range from $900 million to $920 million, up about 10% from the previous year. “AI is reducing the overall capacity in the market or the overall supply in the market, which is leading to favorable pricing trends for us.” CEO Steve Bondran said:.

The consensus rating for American Tower stock is a “strong buy.” Of the 17 analysts who have recommended the stock, 13 rate it as a “strong buy,” two advise it as a “moderate buy,” and two advise it as a “hold.”

of Analyst average price target AMT price is $228.69, indicating a 17.9% upside potential. However, the high price target of $245 suggests the stock could appreciate up to 26.3% from current levels.

www.barchart.com

On the date of publication, Shristi Suman Jayaswal I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
Artificial intelligence (AI) is revolutionizing various sectors and pushing the stock market to unprecedented heights.The global AI market is ready Over $1 trillion by 2030the enthusiasm surrounding AI is justified.Nvidia represents the AI ​​investment boom (NVDA), known for its chips that are critical to training and running AI models.But on the other hand NVDA could lead Phase 1 Head of AI Industry, Goldman Sachs Analyst (GS) say there is 3 additional phases An AI boom is on the horizon, and each wave offers unique investment opportunities.

According to Goldman, Phase 2 will include “semiconductor companies, cloud providers, data center REITs, hardware and equipment companies, security software stocks, and utility companies,” many of which include There is still room for significant expansion.Three companies that Goldman Sachs analysts believe will benefit from a “Phase 2” stage of AI implementation are semiconductor company Monolithic Power; (MPWR)software company Synopsys (SNPS)Data Center REIT American Tower (AMT)all of which have a consensus “Strong Buy” rating on Wall Street.Stock #1: Monolithic Power System (MPWR)Monolithic Power Systems, Inc., headquartered in Kirkland, Washington. (MPWR) designs and manufactures integrated power semiconductor solutions and power delivery architectures for the computing and storage, automotive, industrial, communications, and consumer application markets. The current market capitalization is $32.9 billion.monolithic power stock It is up 38.3% over the past 52 weeks, outperforming the S&P 500 Index. ($SPX) It's up 33.2% over the period. The stock's annual dividend is $4.00 per share, giving it a dividend yield of 0.59%.www.barchart.com
Monolithic Power addresses power design challenges for AI systems and contributes to AI infrastructure. The company's work in AI hardware power is part of a broader effort to define the AI ​​power ecosystem and support the growth of the AI ​​market.

Last month's price hike for monolithic power was Fourth quarter 2023 revenue exceeded expectations Earnings were $454 million, and adjusted net income was $140.8 million, or $2.88 per share. Management increased total assets by 18.2% year over year to $2.43 billion, while reducing total debt by 1.5% annually to $384.4 million as of December 31, 2023.Additionally, the company expects sales for the current quarter to be in the range of $437 million to $457 million. Gross margins are stable as revenue improves, and Monolithic Power expects gross margins to be between 55.1% and 55.7% for the current quarter.The consensus rating for Monolithic Power stock is a Strong Buy. Of the 12 analysts recommending the stock, 9 rate it as a “strong buy,” 2 advise it as a “moderate buy,” and 1 advises it as a “hold.”of Analyst average price target MPWR’s price is $739.40, indicating a potential upside of 9.9% from current levels. However, the high price target of $830 that KeyBanc set in February suggests the stock could rise as much as 23.3% from current levels. www.barchart.com
Stock #2: Synopsys (SNPS)Synopsys, based in Sunnyvale, California, is valued at $91.8 billion. (SNPS) is a software development company that provides tools and services for designing and validating electronic systems. The company is investing heavily in AI and machine learning (ML) to develop new tools that allow designers to automate more of the design process.

Synopsys stock has increased 60.6% over the past 52 weeks, outpacing SPX's gain over this period.www.barchart.com
In late February, Synopsys reported fiscal 2024 first-quarter revenue of $1.65 billion, up 21% from a year earlier, beating Wall Street's expectations of $1.64 billion. Similarly, first-quarter non-GAAP EPS of $3.56 exceeded expectations due to strong demand for semiconductor research and development despite macro uncertainties.During the quarter, Synopsys reported positive feedback from pilot participants. Synopsys.ai co-pilotintegrates Microsoft (MSFT) Azure OpenAI accelerates chip design.Along with that First quarter results exceed expectations, the stock soared on the company's strong guidance, driven by demand for its AI products. CEO Sassine Ghazi believes AI will drive customers' investments in silicon and systems and position the company for future growth. The company expects adjusted EPS for the current quarter to be between $3.09 and $3.14. The consensus for Synopsys stock is a “strong buy” rating. Of the 14 analysts who recommended the stock, 12 rated it a “strong buy,” one rated it a “moderate buy,” and one rated it a “hold.” of Analyst average price target SNPS is priced at $609, indicating a 2.1% upside potential. However, the high price target of $675 suggests the stock could appreciate up to 13.2% from current levels.

www.barchart.com
Stock #3: American Tower (AMT)Boston-based American Tower Corporation (AMT)The company, one of the world's largest REITs, is a major player in multi-tenant communications real estate, leasing tower space and providing customized colocation solutions such as in-building systems, distributed antenna systems, and managed rooftops. and facilitate network deployment. The current market capitalization is $90.4 billion.american tower stock Virtually unchanged over the past 52 weeks. The company's annual dividend is $6.45 per share, giving it a dividend yield of 3.33%.www.barchart.com
The wireless communications infrastructure company achieved solid growth and profitability in the fourth quarter. Revenue reaches $2.79 billion Adjusted EBITDA margin is 63.2%. Real estate revenue soared to $2.76 billion, and free cash flow rose 17.7% year over year to $611 million. Funds under management of $2.29 per share easily beat consensus estimates.Advances in AI are expected to significantly increase demand for American Tower's assets. Data center revenue in 2024 is projected to range from $900 million to $920 million, up about 10% from the previous year. “AI is reducing the overall capacity in the market or the overall supply in the market, which is leading to favorable pricing trends for us.” CEO Steve Bondran said:.The consensus rating for American Tower stock is a “strong buy.” Of the 17 analysts who have recommended the stock, 13 rate it as a “strong buy,” two advise it as a “moderate buy,” and two advise it as a “hold.”

of Analyst average price target AMT price is $228.69, indicating a 17.9% upside potential. However, the high price target of $245 suggests the stock could appreciate up to 26.3% from current levels.
www.barchart.com
On the date of publication, Shristi Suman Jayaswal I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/3-strong-buy-stocks-to-invest-in-for-the-next-wave-of-ai 3 'Strong Buy' stocks to invest in for the next wave of AI

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