After Nvidia's latest blowout, here are 20 AI stocks expected to rise as much as 44%

By Philip van Doorn

Nine out of 10 analysts covering Nvidia rate the stock a buy, even though it has more than tripled over the past year

With Nvidia Corp. reporting another set of amazing numbers, it's time for a broad look at the artificial-intelligence landscape to see which stocks are most favored by analysts.

Here's a sampling of coverage of Nvidia's (NVDA) results for its fiscal fourth quarter, along with concerns over the stock's valuation and what to expect as the AI build-out continues:

Nvidia earnings send stock rocketing as company cheers AI 'tipping point'Nvidia's sheer dominance can be summed up by this one underrated numberNvidia's stock surge could add $200 billion in market cap with 'mammoth growth' on tapWall Street keeps likening Nvidia to dot-com-era Cisco. Is the comparison justified?Nvidia's growth and Intel's chip-making plans depend on AI fulfilling its promise

AI stock screen

One can screen stocks by sector or industry, but when it comes to artificial intelligence, a broad array of companies are involved in aspects of the infrastructure build-out, including those that provide the hardware needed to support the implementation of Nvidia's graphics processing units by data centers, along with cloud services, other software and power management.

So our new stock screen begins with the holdings of eight exchange-traded funds that take various approaches to track stocks of companies expected to benefit from AI implementation. If an ETF's portfolio is weighted by market capitalization, Nvidia is likely to be its largest holding, so the percentage of each fund's Nvidia position is indicated. Equal-weighted funds (or those with caps on weightings) are rebalanced periodically, so recent price appreciation will increase some holdings' weightings until the next rebalance.

   ETF                                                            Assets ($mil)ETF weighting                                                        Stocks held  Nvidia portfolio holding ranking  Nvidia portfolio percentage Top holding if not Nvidia 
   Global X Robotics & Artificial Intelligence ETF                       $2,508Market cap                                                               42                      1                             18.9% 
   Global X Artificial Intelligence & Technology ETF                     $1,232Market cap with maximum of 3%                                            85                      2                             3.3%             Meta Platforms Inc. 
   iShares Robotics & Artificial Intelligence Multisector ETF              $612Equal weighting                                                          111                     3                             1.3%             Arm Holdings PLC ADR 
   First Trust Nasdaq Artificial Intelligence & Robotics ETF               $509Modified weighting based on involvement in AI or robotics                108                     34                            1.0%             PKSHA Technology Inc. 
   WisdomTree Artificial Intelligence & Innovation Fund                    $236Equal weighting                                                          80                      9                             1.7%             Arm Holdings - 3.00% 
   Invesco AI & Next Gen Software ETF                                      $226Modified weighting based on exposure to AI-related industries            100                     1                             10.1% 
   ROBO Global Artificial Intelligence ETF                                 $165Weighting by score based on AI contribution to sales                     62                      1                             3.0% 
   Roundhill Generative AI & Technology ETF                                $105Weighted by exposure score to generative AI and related industries       43                      1                             7.8% 
                                                                                                                                                                                                                            Sources: FactSet, ETF managers 

Click the ETFs' tickers for more information, including each fund's expenses.

If we add the eight ETFs' holdings and remove duplicates, we're left with a global group of 339 stocks. We narrowed the list to 198 companies that have market capitalizations of at least $5 billion and are covered by at least 10 analysts polled by FactSet.

Here are the 20 remaining companies with at least 80% buy or equivalent ratings among analysts and whose stocks have the highest 12-month upside potential implied by the consensus price targets:

   Company                       Country        Share buy ratings  Feb. 21 price  Cons. price target  Implied 12-month upside potentialHeld by 
   Meituan Class B               China                        85%          77.00              136.68                                44%AIQ 
   Kuaishou Technology Class B   China                        93%          45.55               80.24                                43%IRBO 
   Baidu Inc ADR Class A         China                        90%         107.22              162.02                                34%AIQ, ROBT, CHAT 
   Tencent Holdings Ltd.         China                        95%         288.80              425.30                                32%AIQ, IRBO, ROBT, CHAT 
   Naver Corp.                   South Korea                  81%     202,500.00          279,793.10                                28%ROBT, WTAI, CHAT 
   Renesas Electronics Corp.     Japan                        93%       2,429.00            3,345.71                                27%ROBT, IGPT 
   Smartsheet Inc. Class A       U.S.                         81%          41.46               56.55                                27%AIQ 
   Aptiv PLC                     Ireland                      81%          77.63              104.87                                26%ROBT 
   Kanzhun Ltd. ADR              China                        83%          14.81               19.91                                26%AIQ 
   Infineon Technologies AG      Germany                      85%          32.90               44.10                                25%AIQ, IRBO, THNQ 
   Samsung Electronics Co.       South Korea                  95%      73,000.00           96,263.63                                24%AIQ, IRBO, ROBT, WTAI 
   GXO Logistics Inc.            U.S.                         82%          53.56               68.76                                22%ROBT 
   Nanya Technology Corp.        Taiwan                       92%          67.30               84.85                                21%IGPT 
   Nvidia Corp.                  U.S.                         93%         674.72              832.03                                19%All eight ETFs listed above 
   Quanta Computer Inc.          Taiwan                       88%         236.00              290.94                                19%CHAT 
   Amazon.com Inc.               U.S.                         97%         168.59              207.70                                19%All listed above except BOTZ and IGPT 
   Delta Electronics Inc.        Taiwan                       90%         291.00              357.85                                19%ROBT 
   CyberArk Software Ltd.        Israel                       94%         244.07              298.12                                18%AIQ 
   Netease Inc.                  China                        95%         171.40              207.49                                17%IRBO 
   HubSpot Inc.                  U.S.                         80%         589.23              698.92                                16%IRBO, IGPT, THNQ 
                                                                                                                                                               Source: FactSet 

If a company made the list under a non-U.S. ticker where it is locally listed but also has a U.S.-listed American depositary receipt, we have only included the ADR in this table.

Click on the tickers for more about each company, including corporate profiles, price ratios, financials and estimates.

Click here for Tomi Kilgore's detailed guide to the wealth of information available for free on the MarketWatch quote page.

Don't miss: Want your stock picks to beat index funds? Look at companies with one key metric.

-Philip van Doorn

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