With another impressive set of financial results from Nvidia Corp., it’s an opportune moment to take a comprehensive look at the artificial intelligence landscape and identify the stocks highly recommended by analysts.
Exploring AI Stocks
When delving into artificial intelligence investments, it’s essential to consider a wide range of companies involved in the infrastructure development. This includes providers of hardware crucial for supporting Nvidia’s graphics processing units in data centers, cloud services, software solutions, and power management.
To kick off our analysis, we examine the holdings of eight exchange-traded funds (ETFs) that adopt diverse strategies to monitor companies poised to gain from AI integration. Notably, Nvidia often emerges as a significant holding in ETF portfolios, with varying weightings based on market capitalization or equal-weighted approaches.
Here’s a breakdown of the ETFs and their key details:
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Global X Robotics & Artificial Intelligence ETF (BOTZ)
- Assets: $2,508 million
- ETF Weighting: Market cap
- Stocks Held: 42
- Nvidia Portfolio Holding Ranking: 1st
- Nvidia Portfolio Percentage: 18.9%
- Top Holding if not Nvidia: Global X Artificial Intelligence & Technology ETF
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Global X Artificial Intelligence & Technology ETF (AIQ)
- Assets: $1,232 million
- ETF Weighting: Market cap with a maximum of 3%
- Stocks Held: 85
- Nvidia Portfolio Holding Ranking: 2nd
- Nvidia Portfolio Percentage: 23.3%
- Top Holding if not Nvidia: Meta Platforms Inc.
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iShares Robotics & Artificial Intelligence Multisector ETF (IRBO)
- Assets: $612 million
- ETF Weighting: Equal weighting
- Stocks Held: 111
- Nvidia Portfolio Holding Ranking: 3rd
- Nvidia Portfolio Percentage: 31.3%
- Top Holding if not Nvidia: Arm Holdings PLC ADR
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First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT)
- Assets: $509 million
- ETF Weighting: Modified weighting based on AI or robotics involvement
- Stocks Held: 108
- Nvidia Portfolio Holding Ranking: 3rd
- Nvidia Portfolio Percentage: 41.0%
- Top Holding if not Nvidia: PKSHA Technology Inc.
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WisdomTree Artificial Intelligence & Innovation Fund (WTAI)
- Assets: $236 million
- ETF Weighting: Equal weighting
- Stocks Held: 80
- Nvidia Portfolio Holding Ranking: –
- Nvidia Portfolio Percentage: 1.7%
- Top Holding if not Nvidia: Arm Holdings
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Invesco AI & Next Gen Software ETF (IGPT)
- Assets: $226 million
- ETF Weighting: Modified weighting based on exposure to AI-related industries
- Stocks Held: 100
- Nvidia Portfolio Holding Ranking: 1st
- Nvidia Portfolio Percentage: 10.1%
- Top Holding if not Nvidia: ROBO Global Artificial Intelligence ETF
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ROBO Global Artificial Intelligence ETF (THNQ)
- Assets: $165 million
- ETF Weighting: Weighting by score based on AI contribution to sales
- Stocks Held: 62
- Nvidia Portfolio Holding Ranking: 1st
- Nvidia Portfolio Percentage: 3.0%
- Top Holding if not Nvidia: Roundhill Generative AI & Technology ETF
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Roundhill Generative AI & Technology ETF (CHAT)
- Assets: $105 million
- ETF Weighting: Weighted by exposure score to generative AI and related industries
- Stocks Held: 43
- Nvidia Portfolio Holding Ranking: 1st
- Nvidia Portfolio Percentage: 7.8%
- Top Holding if not Nvidia: –
By consolidating the holdings of these ETFs and eliminating duplicates, we arrive at a selection of 339 global stocks. Focusing on companies with market capitalizations exceeding $5 billion and coverage by a minimum of 10 analysts, we identify 198 firms for further evaluation.
Among these, 20 companies stand out with over 80% buy or equivalent ratings from analysts, boasting significant upside potential based on consensus price targets. Here is a snapshot of these top-rated companies:
| Company | Country | Share Buy Ratings | Feb. 21 Price | Cons. Price Target | Implied 12-Month Upside Potential | Held by |
|---|---|---|---|---|---|---|
| Meituan Class B | China | 85% | 77.00 | 136.68 | 44% | AIQ |
| Kuaishou Technology Class B | China | 93% | 45.55 | 80.24 | 43% | IRBO |
| Baidu Inc ADR Class A | China | 90% | 107.22 | 162.02 | 34% | AIQ, ROBT, CHAT |
| Tencent Holdings Ltd. | China | 95% | 288.80 | 425.30 | 32% | AIQ, IRBO, ROBT, CHAT |
| Naver Corp. | South Korea | 81% | 202,500.00 | 279,793.10 | 28% | ROBT, WTAI, CHAT |
| Renesas Electronics Corp. | Japan | 93% | 2,429.00 | 3,345.71 | 27% | ROBT, IGPT |
| Smartsheet Inc. Class A | U.S. | 81% | 41.46 | 56.55 | 27% | AIQ |
| Aptiv PLC | Ireland | 81% | 77.63 | 104.87 | 26% | ROBT |
| Kanzhun Ltd. ADR | China | 83% | 14.81 | 19.91 | 26% | AIQ |
| Infineon Technologies AG | Germany | 85% | 32.90 | 44.10 | 25% | AIQ, IRBO, THNQ |
| Samsung Electronics Co. | South Korea | 95% | 73,000.00 | 96,263.63 | 24% | AIQ, IRBO, ROBT, WTAI |
| GXO Logistics Inc. | U.S. | 82% | 53.56 | 68.76 | 22% | ROBT |
| Nanya Technology Corp. | Taiwan | 92% | 67.30 | 84.85 | 21% | IGPT |
| Nvidia Corp. | U.S. | 93% | 674.72 | 832.03 | 19% | All eight ETFs listed above |
| Quanta Computer Inc. | Taiwan | 88% | 236.00 | 290.94 | 19% | CHAT |
| Amazon.com Inc. | U.S. | 97% | 168.59 | 207.70 | 19% | All listed above except BOTZ and IGPT |
| Delta Electronics Inc. | Taiwan | 90% | 291.00 | 357.85 | 19% | ROBT |
| CyberArk Software Ltd. | Israel | 94% | 244.07 | 298.12 | 18% | AIQ |
| Netease Inc. | China | 95% | 171.40 | 207.49 | 17% | IRBO |
| HubSpot Inc. | U.S. | 80% | 589.23 | 698.92 | 16% | IRBO, IGPT, THNQ |
For companies listed under non-U.S. tickers with U.S.-listed American depositary receipts, only the ADRs are considered in this analysis. Click on the tickers for detailed insights into each company, encompassing corporate profiles, financial metrics, and market estimates.
For a comprehensive overview of available information on MarketWatch’s quote page, refer to Tomi Kilgore’s detailed guide here.
