Nvidia’s (NVDA) report sheds light on the next AI stock winners, analysts say

Even after China’s DeepSeek hit the market with a bang last month, chipmaker Nvidia (NVDA) in many ways remains the standard-bearer for the AI sector.

For that reason, Nvidia’s latest earnings report didn’t just provide clues about what to expect from the chipmaker but also shed light on what could be the next big AI winners.

UBS says buy the dip “in quality AI stocks”

At first glance, there was a lot to like about the Nvidia report:

• 78% year-over-year fourth-quarter growth
• Current-quarter guidance ahead of expectations
• Adjusted net income 72% higher than last year

Wall Street has had a mixed reaction since the report was released, though, with shares falling steeply on Thursday followed by a slight uptick on Friday as some investors bought the dip.

But beyond the impact the report has on Nvidia, analysts were intrigued by what it might reveal about the AI industry’s next big winners.

Demand for its Blackwell line and increased data center revenue hint at a continued need for AI hardware, and UBS remains bullish on the segment in general.

“We maintain our positive view on AI semiconductors and leading cloud platforms, and recommend investors take advantage of elevated near-term volatility by buying the dip in quality AI stocks or through structured strategies,” the investment firm wrote in an optimistic note on Thursday.

Analysts have improved their forecasts for several AI-related companies in recent days, in some cases due to their work with Nvidia.

For example, Citi stock analyst Atif Malik pointed to Cisco’s (CSCO) expanded partnership with Nvidia to integrate its Silicon One architecture into the Spectrum-X Ethernet platform used in data centers.

“CSCO remains our top comms equipment pick in 2025 given a growing AI opportunity and its relatively undemanding valuation,” he said.

Citi has labeled Cisco a buy and improved its target from $71 to $73 on Thursday. Shares are up more than 9% since January 1.

Competitors could be riding Nvidia’s coattails

Analysts are not only intrigued by companies like Cisco that are actively partnering with Nvidia. They also see room for promising AI rivals to benefit from the chipmaker’s expected growth.

Taiwan Semiconductor (TSM) stood out to Bank of America, who advised that its AI-related revenue could double this year due to its emerging reputation as the “go-to supplier” of key industry components.

As analyst Brad Lin wrote: “With Nvidia reporting strong results and solid demand guidance, the rapid ramp-up of Blackwell and continued supply tightness (also reflected by comments on Nvidia’s gaming business) suggest sustained high utilization rates at TSMC.”

Among the 18 analysts tracking Taiwan Semiconductor, 17 have it rated as either a buy or a strong buy.

Several other stocks have also received a boost from analysts amid cautious optimism about Nvidia and AI growth, including Vertiv Holdings (VRT), which, like Nvidia, released strong earnings numbers.

Analysts say Amphenol (APH), a major supplier for Nvidia’s Blackwell system, is also positioned to piggyback on that project’s Wall Street buzz.

In the meantime, Evercore ISI noted that rivals like Dell (DELL) and HP Inc. (HPQ) stand to benefit from “fears of a pocket of digestion between the Hopper to Blackwell transition.”

Both the speed and trajectory of AI growth remain impossible to accurately predict; the focus remains on finding “quality” stocks, according to UBS.