DeepSeek AI revelations were the biggest concern for investors when the month started. Many had started questioning if investing so much in AI infrastructure was worth it. Since then, the market sentiment has turned positive again and many of the stocks have recovered. We are now closing in on the most anticipated earnings call of the year so far: Jensen Huang telling us on 26th February how his company performed in the previous quarter.
Investing in the supply chain of big companies has proven beneficial over the years. As the stronger and the bigger company grows, it helps the smaller companies which are an important part of the supply chain also grow.
The Santa Clara-based chipmaker’s earnings will affect the whole market, not just its suppliers. Analysts expect an earnings beat on both the EPS and revenue. This is what the KeyBanc analysts had to say about the earnings:
“Despite prior concerns regarding constraints associated with the ramp of GB200 NVL servers, we expect NVDA to report strong F4Q results, which we anticipate will solidly beat, and to guide F1Q conservatively and moderately higher than consensus.”
We decided to take a look at companies that will benefit from the above-mentioned earnings beat. To come up with our list of 10 stocks that could skyrocket after Jensen Huang’s earnings call, we looked at stocks that are major suppliers of the company.
10. Keysight Technologies, Inc. (NYSE:KEYS)
Keysight Technologies, Inc. is an electronic design and test solutions provider. The company operates through the Electronic Industrial Solutions Group and Communications Solutions Group segments. It provides electronic design automation software, modular instruments, oscilloscopes, digital multimeters, and other products.
KEYS just signed a virtual power purchase deal with Southern Power to buy renewable energy credits generated by a new solar project in Texas. Its share in the project is expected to produce renewable electricity which will be equal to 100% of its electricity utilization in the U.S. and Canada.
The company made another strategic move recently by acquiring Spirent Communications which has expertise in service assurance and network testing. This will enable the company’s capability to provide end-to-end solutions for complex networking needs including 5G and AI technologies.
As the global AI market is expected to expand at a CAGR of over 35% and reach $2 trillion by 2030, more data centers will be needed to meet this strong demand. Keysight is set to benefit from this investment growth wave.
9. Vertiv Holdings (NYSE:VRT)
Vertiv Holdings is involved in critical infrastructure related to data centers and communication networks. The company specializes in liquid cooling, an energy protocol that has become increasingly relevant since the announcement of Blackwell GPUs, which require modern cooling techniques to run efficiently. This is also what is expected to make the stock more volatile heading into the much-awaited earnings report.
The stock has lost nearly 40% of its value since announcing a disappointing earnings report a couple of weeks ago. It may be too early to write off the company though. Even if the AI spending slows down, there is little doubt that the power-intensive GPUs of the future will continue to rely on Vertiv’s full-stack solutions.
Yes, there is a slowdown in the company’s growth but at these price levels, that is priced in and any boost from Blackwell GPUs can help new investors outperform the broader market with ease.
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