3 Tech Stocks to Buy BEFORE Nvidia Reports Earnings on May 22


  • Whenever industry darling Nvidia announces results, AI stocks rally. 
  • Advanced Micro Devices (AMD): AMD’s MI300 is a big success and it will drive revenue throughout 2024.
  • Oracle (ORCL): Oracle has built a strong data center business and is steadily moving upwards. 
  • Palantir Technologies (PLTR): An undervalued stock, Palantir has strong buy rating from several analysts. 
tech stocks to buy - 3 Tech Stocks to Buy BEFORE Nvidia Reports Earnings on May 22

Source: sdecoret / Shutterstock.com

Industry darling Nvidia (NASDAQ:NVDA) is set to report results on May 22 and this is the most awaited event for tech investors. Positive results boost the market and take several other tech stocks higher. Artificial Intelligence driven companies have benefitted from the rally, and since AI is the next big thing, there is no way investors can ignore it. Tech leaders are betting on AI to achieve higher profit and growth and investors are on the lookout for tech stocks to buy.

Several tech companies have seen their stocks surge over the past year, including Nvidia. If the company beats expectations again, we will see Nvidia inch closer to $1,000. Investors who think Nvidia stock is too expensive right now might want to take a look at these three tech stocks to buy that could rally after Nvidia’s earnings, driven by the positive market sentiment towards AI. Let’s dive deep into them. 

Advanced Micro Devices (AMD)

Advanced Micro Devices, Inc. (AMD) logo in the building at CNE in Toronto. AMD is an American semiconductor company.
Source: JHVEPhoto / Shutterstock.com

Nvidia’s results will have multiple mentions of AI, and its biggest competitor, Advanced Micro Devices (NASDAQ:AMD) is set to benefit from the positive market sentiment. Up 18% year-to-date, and 52% in the last 12 months, AMD stock is trading at $164 today. The stock looks undervalued to me and has the potential to hit $200 this year. 

AMD launched the MI300 AI GPU and saw a significant improvement in the data center revenue which was up 80% year-over-year to hit $2.3 billion in the recent quarter. This is just the beginning for AMD. 

The company managed to achieve $1 billion in revenue in just two quarters through its MI300 computing system. Its accelerators are considered one of the best in the industry for generative AI, and several tech giants have shown interest in using AMD chips. Microsoft (NASDAQ:MSFT) is offering AMD alternative to Nvidia AI processors for its cloud customers and this is set to benefit the company.

Driven by stellar sales, management has raised the guidance for data center revenue to $4 billion for the year. AMD might not soar as aggressively as Nvidia, but it will keep moving upwards at a steady pace. Lastly, AMD has recently replaced Nvidia in the Wolfe Research Alpha List. 

Oracle (ORCL)

A photo of an Oracle (ORCL stock) sign outside a building.
Source: Jer123 / Shutterstock.com

I have been pounding the table about Oracle (NYSE:ORCL) stock for a while and I think Nvidia’s strong results could benefit the stock.

Already up 18% YTD, Oracle stock is trading for $123 today and has soared 5% since the news that the company is in talks with Elon Musk’s AI startup, xAI, for a $10 billion deal. While there is no confirmation yet, investors are optimistic about it, and it has helped the stock rally. 

One solid reason to bet on this company is the rising demand for data centers. Tech giants are committing billions to build new data centers, and organizations are gradually shifting towards cloud. 

The company is building 100 data centers and has seen a 29% YOY jump in performance obligations to $80 billion. This gives an idea about the future growth of the company. It reported impressive financials with a 25% rise in the cloud revenue for the third quarter. Its total revenue stood at $13.3 billion, whereas the cloud revenue was $5.1 billion. ORCL is one of the best tech stocks to buy now.

I am not saying Oracle is a buy because of the anticipated deal with xAI. I am saying Oracle is a buy for its potential to deliver and stand strong amidst the growing AI competition. 

Palantir Technologies (PLTR)

In this photo illustration, the Palantir Technologies (PLTR) logo is displayed on a smartphone screen.
Source: rafapress / Shutterstock.com

Another tech company Palantir Technologies (NYSE:PLTR) has shown high volatility despite reporting strong quarterly numbers. PLTR stock is trading for $21 at the time of writing and hasn’t been able to soar after earnings.

It’s up 31% YTD and 83% in the past 12 months but is still trading lower than its $35 all-time high. Nvidia’s earnings could boost the stock and help it bounce back.

The company is focusing on profits in recent quarters and has achieved tremendous success with the Artificial Intelligence Platform (AIP). In the first quarter, it saw a 27% YOY rise in commercial revenue and a 16% rise in government revenue. Its customer count was up 42% YOY and 11% quarter-over-quarter. 

The market believes Palantir is trading at a rich valuation, and many are not happy with the second quarter guideline. However, I believe the company has potential to double your money by 2025. Its steady growth in the industry speaks for its strength and the ability to innovate. 

Palantir is a legacy business that has seen several market ups and downs. While the stock hasn’t been able to hit new highs lately, it still has the potential to rally. Half a dozen analysts have a buy rating for the stock after the results. PLTR is a solid long-term buy and hold. 

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-tech-stocks-to-buy-before-nvidia-reports-earnings-on-may-22/.

©2024 InvestorPlace Media, LLC