Published on 24 Apr 2024 on Zacks via Yahoo Finance
Should You Buy These 4 AI Stocks Ahead of Q1 Earnings?
Artificial Intelligence (AI) has been at the focal point of investors’ horizons in 2024, thanks to the growing proliferation of AI-supported products and services. Demand for AI is escalating, and that has increased the need for data center capacity expansion as well as semiconductor chips that can offer significant computational power to process massive amounts of data.AI’s rapid proliferation bodes well for semiconductor companies, data center infrastructure providers, cloud computing and AI software providers. The first-quarter 2024 earnings season is expected to offer investors an insight into how AI companies are faring in terms of generating revenues and earning profits through AI endeavors.Arista Networks ANET, Amazon AMZN, Advanced Micro Devices AMD and NVIDIA NVDA are a few stocks that investors may find wise to buy ahead of the first-quarter earnings thanks to their growing AI prowess.While ANET sports a Zacks Rank #1 (Strong Buy), AMZN, AMD, and NVDA carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Let’s delve deep into find out how AI has shaped up growth trajectory of these top-ranked stocks this earnings season.Arista Networks is scheduled to report first-quarter 2024 results on May 7. Strong demand for computer network switches by hyperscalers has been benefiting its prospects. Higher bandwidth requirements in data centers are driving demand for ANET’s network switches.ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations. The versatility of Arista’s unified software stack across various use cases, including WAN routing, campus and data center infrastructure, sets it apart from other competitors in the industry.Arista’s first-quarter 2024 results are expected to have benefited from these factors. The Zacks Consensus Estimate for earnings is pegged at $1.74 per share, up by a penny over the past 30 days and indicates 21.68% year-over-year growth.
Arista Networks, Inc. Price and EPS Surprise
