Summary
The Morningstar Global Next Generation Artificial Intelligence Index has gained 60.56%. So far this year, the index is up 10.95%, roughly twice the overall market’s gain. Of the 10 companies highlighted here, six are fairly valued and three are overvalued.
Eight of the 10 stocks on this list have Uncertainty Ratings of High or Very High. The other two, Broadcom and Microsoft, have Unccertainty Ratings. Here’s what Morningstar analysts say about these stocks ahead of their first-quarter earnings reports.
“We believe shares are pricing in overly rosy expectations (and hype) about AI spending, and shares look out of reach to us”—William Kerwin. “We anticipate that Intel will continue to tout its PC AI CPUs for edge AI workloads”
“Marvell is modestly overvalued. It hasn’t traded up to the same extent of other AI networking plays Arista Networks and Broadcom’s shares. We’re not clear as to the potential timing, economics, or upside from this opportunity.”—Brian Colello.
We'll be interested in the mix shift at Nvidia between its newest vs. prior-generation GPUs, says Brian Colello. “We’ll be interestedin the mix of the new and old,” he says. � “It’s going to be interesting to see how that plays out.”
