Missed the Nvidia gravy train? These alternatives are expected to see huge earnings growth going forward

Published Sat, Mar 16 20248:01 AM EDT

There's a host of stocks that can still benefit from the artificial intelligence craze besides Nvidia , according to analysts. Nvidia's annual GTC Conference , dubbed "AI Woodstock" by Bank of America, on Monday will feature a keynote speech from CEO Jensen Huang and allow for the high-flying chipmaker to spotlight its latest products and announce what's ahead. Shares of Nvidia have skyrocketed nearly 80% so far this year, but the company has had a volatile week as some traders took in profits ahead of the conference. As investors look for AI plays beyond Nvidia, CNBC Pro used FactSet data to screen for stocks in the technology and semiconductor space that should see significant earnings growth in the future. Here's the criteria we used for the selection below: S & P 1500 tech sector Market capitalization of $1 billion or more Expected 2024 earnings per share growth of more than 35% Expected 2025 EPS growth of 10% or more Advanced Micro Devices , also a global semiconductor name like Nvidia, remains an AI darling among investors. The stock, which has jumped roughly 30% year to date, added 2.1% on Friday. Analysts anticipate year-over-year earnings per share for 2024 will grow by 39.5% and advance by 48.7% in 2025. Citi recently named AMD among its "most favored names" in semiconductors, which it thinks should continue trading at a premium despite worries about high valuations for the stocks. Citi analyst Christopher Danely wrote in a note that "clients are excited about the AI opportunity for Nvidia and AMD, equipment names on positive capex revisions and various CHIPS act subsidies, and NXP on their resilient auto exposure." Seagate Technology , a data storage company, also made the cut. Shares are up 43% over the past year, but have added less than 1% in 2024. Analysts forecast EPS growth of 262% for 2024 compared to the previous year. Evercore ISI initiated coverage of Seagate on Feb. 27 with an outperform rating and $110 price target, saying the stock is well positioned to benefit from the cyclical recovery with hyperscalers and that the company could see margin expansion as Heat Assisted Magnetic Recording, or HAMR, technology scales up. Fabless chipmaker SiTime also came up on the screen. It's been a rocky 2024 for the stock, which is off 31% year to date. However, analysts have high expectations for EPS growth, forecasting a year-over-year jump of 224.4% in 2024. Last month, SiTime reported a beat on fourth-quarter revenue and earnings expectations, per FactSet. Management said on the company's earnings call that sequential growth is expected throughout 2024, with the second half of the year being stronger than the first. SiTime's data center business drove significant growth in its communications and enterprise segment, the company added. Other stocks that can expect to see huge earnings growth moving forward include Super Micro Computer , audio and imaging technologies developer Dolby Laboratories and Ultra Clean Holdings .