Seeking AI Exposure? Use This Zacks Thematic Screen

Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you.

For those interested in viewing the Thematic lists, please click here >>> Thematic Screens – Zacks Investment Research.

Let’s take a closer look at the Artificial Intelligence theme and analyze a stock that the screen returned, such as beloved NVIDIA NVDA.   

This screen features diverse companies involved in AI, ranging from creators of software and hardware that power AI to those applying and utilizing this technology through automation, diagnostics, cognitive tasks, and more.

Artificial Intelligence

Artificial Intelligence (AI) refers to the technology that enables computers and machines to simulate human intelligence and problem-solving capabilities to perform the cognitive functions usually associated with human minds.

In general, AI systems work by ingesting large amounts of data with fast, iterative processing and intelligent algorithms. It then analyzes the data using neural networks for correlations and patterns and allows the software to learn automatically from these patterns to make predictions.

Please click here for a direct link to the Zacks Artificial Intelligence Thematic Screen.

NVIDIA

We’ve all been accustomed to NVIDIA’s recent story, with its historical growth fueled by unrelenting demand for its Data Center products. The tech titan continued to fire on all cylinders throughout its latest release concerning its Data Center, with sales of $39.1 billion up 73% from the $22.5 billion print in the same period last year.

As shown below, NVDA’s Data Center results have regularly blown away our consensus Data Center expectations over recent periods.

CEO Jensen Huang again provided a bullish statement in the latest release, stating –

“Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.”

The stock overall still reflects one of the strongest AI plays out there, with shares also not overly expensive. Shares currently trade at a 30.1X forward 12-month earnings multiple, a fraction of the 106.3X five-year highs and well beneath the 50.0X five-year median.

The current PEG ratio works out to a fair 1.1X, again well beneath five-year highs and the five-year median.

Bottom Line

Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you.

Upon running the Zacks Artificial Intelligence Thematic screen, NVIDIA NVDA was returned.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research