In a bid to exert some control over how the artificial intelligence (AI) revolution takes shape, the Biden administration issued an executive order that required companies with large AI models to share information about them with the federal government. Donald Trump, when he resumes his presidential office on Jan. 20, is expected to roll back this.
Stocks like Marvell Technology, Inc. MRVL, Broadcom Inc. AVGO and QUALCOMM Incorporated QCOM are slated to make the most of this free hand extended by the incoming regime, especially as chipmakers have continued to outperform other AI-related stocks. Custom designs by chipmakers have extended AI into new devices and varied industries. Alongside, robust data storage solutions and design tools have sped up innovation.
During the campaign, President-elect Trump had promised to rescind President Biden’s 2023 executive order, saying that it “hinders AI Innovation and imposes Radical Leftwing ideas on the development of this technology.” It is now widely expected that he will follow through on that promise, potentially eliminating any regulatory bottleneck. In fact, Trump has already named Silicon Valley venture capitalist David Sacks as his AI and crypto “Czar.”
Trump is expected to promote the build out of AI data center infrastructure. He is also expected to encourage the use of AI for national security. It is extremely likely that, in a bid to stave off the threat of China, he’ll expand export restrictions relating to AI technology. The next few years, thus look extremely encouraging for the sub-sector, and one must choose carefully which AI stocks to invest in.
Our Choices
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Marvell Technology is a data infrastructure semiconductor solutions provider that spans the data center core to network edge. MRVL’s expected earnings growth rate for the current year is 12.6%. The Zacks Consensus Estimate for its current-year earnings has improved 15.4% over the past 60 days. MRVL is a Zacks Rank #1 company.
Broadcom is a designer, developer and supplier of various semiconductor devices. AVGO’s expected earnings growth rate for the current year is 45%. The Zacks Consensus Estimate for its current-year earnings has improved 4.5% over the past 60 days. AVGO is a Zacks Rank #2 company.
QUALCOMM is a global developer and commercializer of foundational technologies for the wireless industry. QCOM’s expected earnings growth rate for the current year is 7.5%. The Zacks Consensus Estimate for its current-year earnings has improved 4% over the past 60 days. QCOM is a Zacks Rank #2 company.
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Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
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Free: See Our Top Stock And 4 Runners UpQUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
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