Investors Eye AI Stocks Amid Nasdaq Correction

Investors are considering AI stocks as the Nasdaq Composite faces a correction. With tech giants like Nvidia and Broadcom set to benefit from ongoing AI investments, this sell-off presents a buying opportunity.

Date: 15-03-2025

AI Rating: 7

Market Correction and AI Stocks: The report discusses the recent correction in the Nasdaq Composite, which may provide an opportunity for investors to acquire stocks at lower prices. It emphasizes the importance of AI hardware providers like Nvidia and Broadcom in the current market and predicts continued growth driven by AI demand.

Nvidia's revenue is projected to reach $204 billion this year, highlighting strong profit generation in the AI sector. The company has experienced significant revenue increases driven by the adoption of AI technologies, primarily due to its role in providing GPUs crucial for AI operations.

Furthermore, Broadcom is positioned to benefit from the booming demand for its custom AI accelerators (XPUs) and connectivity solutions for data centers. The report mentions that Broadcom's trailing-12-month revenue is around $55 billion and indicates a strong growth potential as companies adopt these technologies.

Cloud Computing Segment's Importance for Amazon: For Amazon, the emphasis is on its significant operating profits derived from cloud computing, which contributed to 58% of its operating profits in the last year. This positions Amazon as a strong player amidst any headwinds in its commerce segment. The potential impact of a trade war on pricing is noted, but the cloud segment appears robust.

Advertising Revenues for Alphabet and Meta: The report mentions Alphabet and Meta's advertising businesses, which have allowed these companies to invest heavily in AI infrastructure. These investments are essential for maintaining competitiveness, especially in the evolving AI landscape.

In summary, the text does not delve into specific metrics for EPS, profit margins, or FCF but indicates strong revenue growth for both Nvidia and Broadcom, along with Amazon's solid cloud revenues. These points suggest a favorable outlook for the companies discussed as they navigate current market conditions.

Stocks: NVDA AVGO AMZN GOOG GOOGL META