For investors with confidence in a specific market niche, Zacks Thematic Investment Screens has you covered with 37 dynamic investment themes. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes are built to help you sort through the noise quickly and find the stocks that offer exposure to the trends you seek.
Let’s take a closer look at the Artificial Intelligence theme and analyze a few top-ranked stocks that the screen returned, namely Dell Technologies DELL and Cisco Systems CSCO.
Artificial Intelligence Screen
The Zacks Artificial Intelligence thematic screen features a diverse set of companies involved in the AI frenzy, ranging from creators of software and hardware that power AI to those applying and utilizing the technology through automation, diagnostics, cognitive tasks, and more.
DELL Raises AI Outlook
Dell Technologies posted robust results in its latest release, delivering a double beat relative to Zacks Consensus estimates and reporting rock-solid growth. Sales were up by an impressive 88% YoY, whereas adjusted EPS was up more than 200% from the same period last year.
Red-hot demand stemming from the AI frenzy led to record-breaking results, with DELL booking $24.4 billion in AI orders and recognizing $16.1 billion of AI server revenue. It also increased its AI server revenue expectations for FY27 to $60 billion, further underscoring how strong the demand picture has become for the company.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy) thanks to positive EPS revisions fueled by the demand outlook, with EPS revisions showing notably bullish action.
Image Source: Zacks Investment Research
Cisco Breaks Records
Cisco Systems similarly posted record-breaking results in its latest release, with sales of $15.8 billion reflecting a record for the company while also exceeding the high end of its prior guidance.
Cisco noted broad-based, record-high demand for its technology in the earnings release, with overall product orders growing by 35% YoY. Importantly, data center switching orders grew 40% from the year-ago period, helping reflect its important and growing role amid the buildout.
Bullish EPS revisions across the board have landed the stock as a Zacks Rank #2 (Buy), keeping the stock’s near-term outlook bright.
Image Source: Zacks Investment Research
Bottom Line
While stocks in each theme aren't direct recommendations, they offer a solid starting point. Leverage the Zacks Rank and other metrics to identify the best stocks for your strategy. Each featured stock comes with a Zacks report, giving you the tools to analyze performance and potential.
For those interested in viewing the full list of Thematic Investing Screens, please click here >>> Thematic Investing Screens – Zacks Investment Research.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).