Artificial intelligence (AI) stocks are gaining attention, with Marvell Technology (MRVL), Arista Networks (ANET), and Synopsys (SNPS) leading the way. Marvell produces chips used in various industries such as wireless phone networks, automobiles, and data centers. The company expects its AI chip business to grow significantly in the coming years. On July 11, KeyBanc raised its price target for MRVL stock, citing design wins from Amazon and Google.
Arista Networks sells computer network switches that facilitate communication in data centers. The company’s revenue is heavily dependent on customers like Meta Platforms (parent company of Facebook) and Microsoft. ANET stock surged following positive guidance from Nvidia. However, the impact of AI on the networking sector is yet to be fully realized. Investors are eagerly awaiting ANET’s Q2 earnings report for insights into the AI opportunity.
Synopsys, a leading electronic design automation (EDA) company, recently launched a suite of AI-driven solutions for chip design, verification, testing, and manufacturing. Analysts believe that Synopsys is well-positioned to consolidate market share gains in the AI era. SNPS stock has received positive price target revisions from KeyBanc and has been added to Wells Fargo’s Q3 tactical ideas list.
Novo Nordisk is a leader in weight-loss drugs and diabetes treatments. The company recently unveiled a groundbreaking pill for weight loss, which showed promising results. Analysts expect weight-loss drugs to account for a significant portion of Novo Nordisk’s Q2 sales. The company’s earnings report is scheduled for August 10.
Heico is a military and commercial aircraft contractor. While not directly related to AI stocks, it rounds out the watchlist due to its presence in the aerospace industry.
The upcoming week is crucial for the stock market, with earnings reports from major companies like Microsoft, Google parent Alphabet, and Meta Platforms. Additionally, the Federal Reserve’s decision on interest rates will be closely watched. It is important for investors to stay informed about market direction to make informed trading decisions.
