Some Wall Street Analysts Think 2 Great Artificial Intelligence (AI) Growth Stocks to Buy Before AI Stocks Rise 63% and 70%

Artificial Intelligence (AI) has been on a roll over the past year or so. The ability of generative AI to produce original content and streamline time-consuming processes could change the way business gets done. The opportunity to benefit from the productivity gains of these next-generation algorithms has many companies scrambling to determine how best to incorporate them into their day-to-day operations.

While Koon's market performance in 2023 has been satisfactory, some market observers believe the outlook for AI stocks is still wide open. In fact, a pair of Wall Street analysts see 63% and 70% of potential upside for both stocks over the next year.

Artificial Intelligence Buy 1: Implied Upside of Nvidia-63%

If there's one stock that embodies the potential that recent developments in artificial intelligence represent, it's this one.INVISTA (NASDAQ: NVDA)It will definitely be selected. Its graphics processing unit (GPU) employs row processing technology, which makes data easier to process by splitting it into smaller chunks, thus enabling it to process a large number of mathematical calculations at the same time. This has not only revolutionized gaming, but also facilitated the development of artificial intelligence.

For fiscal 2024 (ending January 28), Nvidia's revenue grew 126% year-over-year to approximately $61 billion and diluted earnings per share (EPS) soared 586% to $11.93. For the first quarter of fiscal 2025 (ending April 30), Nvidia expects revenue to reach a record $24 billion, up 234% year-over-year. For the first quarter of fiscal year 2025 (ending April 30), Nvidia expects revenues to reach a record $24 billion, a year-over-year increase of 2,34%. management has no doubt that the accelerating demand for generative AI is the driving force behind the industry's surge.

Despite the fact that Koon's stock price has risen 488% since the beginning of 2023 (as of this writing), Rosenblatt analyst Hans Mosesmann, who describes himself as "the most bullish analyst on Nvidia," still has a Buy rating on the stock, � setting his target price as high as $1,400. He set a price target as high as $1,400. Compared with Monday's closing price, the potential upside is 63%. Mosesmann said: "The change from general-purpose computing to accelerated computing is reaching a tipping point, and a disruptive new application - generative artificial intelligence - is creating a whole new industry."

This analyst is not the only one who is bullish on artificial intelligence. Of the 56 analysts who commented in March, 52 rated the stock a Buy or Strong Buy.Not one.Recommended to sell. This is surprising considering Wall Street never agrees on anything.

Currently, Nvidia stock trades at 34 times forward earnings. Although this is more thanStandard & Poor's 500 It is 27 times higher than the index, but the company's triple-digit growth and strong momentum suggest it deserves a premium.

Artificial Intelligence Buy #2: Implied Upside of Super Micro Computer - 70%

INVISTA(Nvidia)provides the GPUs needed to train and run the AI system, while theSupercomputer, Inc. (NASDAQ resonance code: SMCI)The company, also known as Supermicro, is integrating these state-of-the-art chips and others into High-Box servers designed to withstand the rigors of AI processing.

The company's focus on efficiency and its building block approach is evident to all. Supermicro offers a wide range of free-air, liquid-liquid, and conventional air-cooling technologies, providing AI-centric server solutions for all budgets and technology levels.

In the company's second quarter of fiscal year 2024, Supermicro's revenues increased 103% year-over-year to approximately $3.7 billion, and adjusted earnings per share jumped 71% to $5.59. Management believes that the company's growth momentum will continue to accelerate. Supermicro expects third-quarter revenue to reach $3.9 billion and earnings per share to reach $5.22, up 205% and 220%, respectively.

Shares of the company have risen a staggering 9,75% since the beginning of 2023, but some believe there's still plenty of upside, with analyst Ananda Baruah at Loop Capital giving the company a Buy rating and setting a price target of $1,500 for the stock. That gives the stock a potential upside of 70% from Tuesday's closing price.

Baruah is increasingly confident in Supermicro's position in the generative AI server space and its leadership in addressing the growing complexity and modularity of the server industry. In addition, he believes the company's revenue will reach $40 billion by the end of fiscal 2026. In context, this is comparable to the $7.1 billion in revenue the company generated in fiscal 2023 (ended June 30th).

This analyst isn't the only one who is bullish on the company. In March of this year, 15 analysts reviewed Supermicro stock, 11 of which were rated Buy or Strong Buy.Not one.Sell is recommended. The price of Supermicro shares is also attractive, currently selling at three times forward sales.

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Danny Vena has positions in Nvidia and Super Micro Computer. the Motley Fool has a position in Nvidia and recommends Nvidia. the Motley Fool has a disclosure policy.

Some Wall Street Analysts Think 2 Super Artificial Intelligence (AI) Growth Stocks Should Be Bought Before AI Growth Stocks Rise 63% and 70% was originally published by The Motley Fool.