- (0:30) – Is it a good time to invest in AI?
- (4:30) – Where should investors try to obtain AI exposure?
- (9:45) – Top stock to keep your watch list now
- (32:15) – Episode Round Up: PGY, SEI, MRVL, AVGO, ORCL, VRT
3 takeouts
- What are the AI stocks that are not nvidia?
- Use Zacks ranks to search for AI stocks organically to find an increase in earnings estimates.
- Don't forget small businesses like Solaris Energy and Pagaya Technologies.
Welcome to episode #450 of Zacks Market Edge Podcast.
Every week, host and Zacks equity strategist Tracey Ryniec will be taking part in discussing the hottest investment topics in stocks, bonds and ETFs and how it will affect your life.
This week, Tracey will be joined by Zacks stock strategist Ethan Feller to discuss how to find AI stocks that are not Nvidia. Most investors now know that NVIDIA is a leading semiconductor manufacturer of chips used in AI. Stock once again reached an all-time high.
But if you want to own a company related to the AI revolution, what else can you invest in?
Can I find AI stocks using Zacks rank?
There is no magic list for “AI Stocks” especially if you're looking out of a big cap. How do investors find hidden gems?
Tracey and Ethan discovered them “organically” while using the Zacks rank. Zacks Rank is Zacks' stock system that seeks changes to analyst revenue estimates. This is a recommendation for short-term trading for just 1-3 months.
A rise in revenue estimates usually indicates that something “good” is happening in the company. And if you dig deeper, you'll see that the company is somehow involved in the AI revolution as it is a chip, infrastructure or end-user.
This is not an easy process. That's why Tracy and Ethan share some of the AI stocks they discovered this year on their podcasts.
5 AI stocks not Nvidia
1. Solaris Energy Infrastructure (sei))
Solaris Energy Infrastructure is located in Zacks' oil and gas: machinery and equipment industries, but comes in two segments: power solutions and logistics. Currently, Power Solutions is 80% of the business, with some customers including data centers.
If you're looking for AI stock, the word “data center” is usually a dead giveaway. Solaris Energy is seeing unprecedented growth several years ago.
The analyst appears to agree. Solaris Energy is expected to increase revenue by 32% this year and another 90% in 2026.
Solaris is a rare small company that pays dividends and currently has 1.7%.
Should Solaris Energy Infrastructure be on the AI shortlist?
2. Marvell Technology, Inc. (MRVL))
Marvell is a large cap digital storage company. We are moving to AI solutions. Marvell is one of the cheapest technologies in AI stock. There are only 27 forward P/Es.
Revenue is expected to increase by 77.7% in fiscal year 2026 and an additional 28% in fiscal year 2027. This gives Marvell a PEG ratio of just 0.6. A PEG ratio below 1.0 indicates that a company has both growth and value.
Should Marvell technology be on the AI shortlist?
3. BroadcomInc. (avgo))
Broadcom is a $1.2 trillion semiconductor company. Broadcom's stock will once again fall to a new all-time high in June 2025.
Revenue is expected to increase by 36% in 2025 and another 24.6% in 2026. How much do investors spend on Broadcom's revenue growth? Quite a lot, after all. Broadcom trades at 40 forward P/E.
Should Broadcom be on your AI shortlist?
4. OracleCorp.orcl))
Oracle was a surprising winner of the AI revolution. Oracle's shares have grown 28.2% since the start of the year.
Revenue is expected to increase by 11.3% in fiscal year 2026 and 14.2% in fiscal year 2027. Oracle trades at 31 forward P/E with a PEG ratio of 2.5.
Should Oracle be on your AI shortlist?
5. PagayaTechnologies Ltd. (pgy))
Pagaya Technologies is a small cap company with a market capitalization of just $1.5 billion. Pagaya brings AI tools to fundraising, especially in lending. Revenues are moving in the right direction. Analysts expect revenue growth of 195.2% in 2025 and revenue growth of 27.8% in 2026.
Pagaya is cheaper and cheaper on a profit basis from price. It trades at just 7.8 forward P/E.
Should a small cap like Pagaya Technologies be on the AI shortlist?
Want some more bonus AI stock picks?
Tracey and Ethan talked about more stocks than just the five listed here. Tune it to this week's podcast and find out what they are.
[In full disclosure, Zacks Insider Trader portfolio owns SEI.]
This article was originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
