The Next AI Bull Run Just Started: 3 Top Ranked Stocks to Ride the Trend
AristaArista(US:ANET) Zacks Investment Research·2024-05-15 17:06

Core Insights - The AI sector is still in its early stages, with significant product releases from Microsoft’s OpenAI and Alphabet expected to drive market momentum [1][2][4] New AI Product Releases - OpenAI launched GPT-4o, showcasing its capabilities in tutoring and interactive learning [2] - Alphabet introduced AI-enabled "Agents" at Google I/O, built on its Gemini platform, which competes with OpenAI's offerings [2][3] Stock Picks - Alphabet (GOOGL) is highlighted as a strong investment opportunity, with a Zacks Rank 1 (Strong Buy) and a reasonable valuation at 22.5x forward earnings, below its 10-year median of 26.2x [4] - Nvidia (NVDA) remains a leading player in AI, with a Zacks Rank 1 and a forecasted EPS growth of 30% annually over the next 3-5 years, trading at 40x forward earnings [6][7] - Arista Networks (ANET) is recognized for its role in cloud networking solutions, crucial for supporting AI workloads, and also holds a Zacks Rank 1 [8][9] Market Trends - Both GOOGL and NVDA stocks have recently broken out from bullish patterns, indicating potential for new highs [7][9] - Arista Networks has shown relative strength during market selloffs, outperforming both Nvidia and Alphabet over the past two and a half months [9]