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AI stocks have flashed momentum as of late following a tough start to 2025.
Recent quarterly results allude to the AI frenzy still being in the early innings.
NVDA, AVGO, and INOD all reflect strong plays on AI.
The AI trade has jumped back into favor over recent weeks following some strong quarterly releases, with AI favorites such as NVIDIA (NVDA - Free Report) , Innodata (INOD - Free Report) , and Broadcom (AVGO - Free Report) all seeing big gains.
Below is a chart illustrating the performance of each over the last month, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
For those interested in momentum, let’s take a closer look at each.
NVIDIA Remains Stellar
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
Innodata Sees Triple-Digit Growth
Innodata is a global data engineering company that provides a range of transferable solutions, platforms, and services for Generative AI / AI builders and adopters. Like those above, Innodata has been enjoying supercharged growth, with sales of $58.3 million throughout its latest period climbing 120% year-over-year.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Importantly, the company reiterated its FY25 revenue growth guidance of 40% or more, a critical announcement given the all-around uncertainty lingering stemming from tariffs. Many companies were unable to provide or reaffirm guidance outlooks throughout the Q1 cycle, but Innodata cleared the crucial hurdle.
Analysts have maintained their bullish sales outlooks following the release, with the $242 million in sales expected for its FY25 up more than 50% over the last year.
Image Source: Zacks Investment Research
Broadcom Reports Record Sales
Broadcom is evolving a broad portfolio of technologies to extend its leadership in enabling next-generation AI infrastructure. This includes foundational technologies and advanced packaging capabilities aimed at building the highest performance, lowest power custom AI accelerators.
The stock currently sports a favorable Zacks Rank #2 (Buy), with its earnings outlook inching higher across several timeframes over recent months thanks to strong quarterly results.
Image Source: Zacks Investment Research
Concerning its latest quarterly release just last week, AI revenue of $4.4 billion moved 46% higher year-over-year. The quarter’s results were driven by robust demand for its AI solutions, with the company forecasting AI semiconductor revenue of $5.1 billion for its Q3.
Notably, AVGO posted a record $15.0 billion in sales, which grew a strong 20% year-over-year. Its cash-generating abilities also saw a nice boost, with free cash flow of $6.4 billion also reflecting a record and climbing 44% year-over-year.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
The AI trade has jumped back into favor recently, with all three companies above – Broadcom (AVGO - Free Report) , NVIDIA (NVDA - Free Report) , and Innodata (INOD - Free Report) – seeing big gains over the past month.
All three companies posted strong results in their latest quarterly releases, with the positivity driven by red-hot demand stemming from the AI frenzy. For those seeking momentum paired with AI exposure, all three provide precisely that.
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3 AI Stocks Flashing Bullish Momentum
Key Takeaways
The AI trade has jumped back into favor over recent weeks following some strong quarterly releases, with AI favorites such as NVIDIA (NVDA - Free Report) , Innodata (INOD - Free Report) , and Broadcom (AVGO - Free Report) all seeing big gains.
Below is a chart illustrating the performance of each over the last month, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
For those interested in momentum, let’s take a closer look at each.
NVIDIA Remains Stellar
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
Innodata Sees Triple-Digit Growth
Innodata is a global data engineering company that provides a range of transferable solutions, platforms, and services for Generative AI / AI builders and adopters. Like those above, Innodata has been enjoying supercharged growth, with sales of $58.3 million throughout its latest period climbing 120% year-over-year.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Importantly, the company reiterated its FY25 revenue growth guidance of 40% or more, a critical announcement given the all-around uncertainty lingering stemming from tariffs. Many companies were unable to provide or reaffirm guidance outlooks throughout the Q1 cycle, but Innodata cleared the crucial hurdle.
Analysts have maintained their bullish sales outlooks following the release, with the $242 million in sales expected for its FY25 up more than 50% over the last year.
Image Source: Zacks Investment Research
Broadcom Reports Record Sales
Broadcom is evolving a broad portfolio of technologies to extend its leadership in enabling next-generation AI infrastructure. This includes foundational technologies and advanced packaging capabilities aimed at building the highest performance, lowest power custom AI accelerators.
The stock currently sports a favorable Zacks Rank #2 (Buy), with its earnings outlook inching higher across several timeframes over recent months thanks to strong quarterly results.
Image Source: Zacks Investment Research
Concerning its latest quarterly release just last week, AI revenue of $4.4 billion moved 46% higher year-over-year. The quarter’s results were driven by robust demand for its AI solutions, with the company forecasting AI semiconductor revenue of $5.1 billion for its Q3.
Notably, AVGO posted a record $15.0 billion in sales, which grew a strong 20% year-over-year. Its cash-generating abilities also saw a nice boost, with free cash flow of $6.4 billion also reflecting a record and climbing 44% year-over-year.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
The AI trade has jumped back into favor recently, with all three companies above – Broadcom (AVGO - Free Report) , NVIDIA (NVDA - Free Report) , and Innodata (INOD - Free Report) – seeing big gains over the past month.
All three companies posted strong results in their latest quarterly releases, with the positivity driven by red-hot demand stemming from the AI frenzy. For those seeking momentum paired with AI exposure, all three provide precisely that.