ZACKSยท2025-06-10 16:16AI Trade Overview - The AI trade has regained momentum recently, with significant gains observed in companies like NVIDIA, Innodata, and Broadcom following strong quarterly releases [1][20] - The performance of these companies has outpaced the S&P 500, indicating a robust interest in AI-related stocks [1] NVIDIA Performance - NVIDIA reported Data Center sales of $39.1 billion, reflecting a 73% increase from $22.5 billion in the same period last year [4] - CEO Jensen Huang highlighted a tenfold surge in AI inference token generation over the past year, indicating strong global demand for NVIDIA's AI infrastructure [6][8] - The stock trades at a forward 12-month earnings multiple of 30.1X, significantly lower than its five-year high of 106.3X and median of 50.0X, suggesting it remains an attractive investment [8][9] Innodata Growth - Innodata achieved sales of $58.3 million, marking a 120% year-over-year increase [10] - The company reaffirmed its FY25 revenue growth guidance of 40% or more, amidst broader market uncertainties [12] - Analysts project $242 million in sales for FY25, representing over 50% growth compared to the previous year [12] Broadcom Results - Broadcom reported AI revenue of $4.4 billion, a 46% increase year-over-year, driven by strong demand for its AI solutions [15] - The company forecasts AI semiconductor revenue of $5.1 billion for Q3, indicating continued growth [15] - Broadcom's total sales reached a record $15.0 billion, growing 20% year-over-year, with free cash flow also hitting a record of $6.4 billion, up 44% year-over-year [16]