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Image: Bigstock, Inc. (AI) Surges 16.0%: Is This an Indication of Further Gains?

Read MoreHide Full Article, Inc. (AI - Free Report) shares rallied 16% in the last trading session to close at $32.94. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 61.5% gain over the past four weeks.

The optimism surrounding the stock can be attributed to bright long-term prospects following NVIDIA’s blowout guidance for second-quarter fiscal 2024, indicating strong demand for artificial intelligence chips.

This company is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of +19.1%. Revenues are expected to be $72.32 million, unchanged compared to the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>, Inc. belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, SecureWorks (SCWX - Free Report) , closed the last trading session 2% higher at $8.73. Over the past month, SCWX has returned -5.4%.

For SecureWorks, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.15. This represents a change of -66.7% from what the company reported a year ago. SecureWorks currently has a Zacks Rank of #3 (Hold).

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