Nvidia is now a trillion-dollar company. All thanks to the artificial intelligence boom, which shows no signs of cooling. Better, the company just blew earnings out of the water. Q1 EPS of $1.09 beat expectations by 17 cents. Revenue of $7.19 billion beat by $670 million. It even saw record data center revenue of $4.28 billion. But this is just the start. As AI changes everything about everything, it could create a potential $1.81 trillion market by 2030, according to Grand View Research. That’s not just great news for Nvidia moving forward. It’s also great news for some of the top tech stocks benefiting from Nvidia’s growth.
Nvidia’s rise comes from its hold on the GPU market for gaming and professional uses. This also includes its growing data center business and emerging AI technology roles. These expanding sectors boost the company’s stock value and total market worth. This shows the increasing need for its top-tier computing solutions.
Due to the company’s success, there are also other tech stocks following in Nvidia’s footsteps. Let take a look at what those companies are.
Advanced Micro Devices (AMD)
The last time I mentioned Advanced Micro Devices (NASDAQ:AMD), it traded at around $105 on May 19. At that time, it just announced it was working with Microsoft (NASDAQ:MSFT) to take on Nvidia’s current dominance with artificial intelligence.
It’s now up to $125.27 and has become one of the top tech stocks benefiting from Nvidia’s growth, as well. Granted, AMD is a bit overbought after such a substantial move.
Despite these concerns, there is optimism around AMD’s future trajectory. My analysis indicates that this stock may still have significant upside. Given its robust product pipeline, strategic acquisitions, and a strong foothold in key growth markets like data centers and gaming, the stock could potentially reach the $200 per share mark.
Even better, KeyBanc Capital Markets just reaffirmed its overweight rating on AMD, with a price target of $110 from $95. The firm noted, “While cloud demand is slowing, the increasing mix of AI server projects is benefiting Nvidia and AMD,” as quoted by Barrons.
C3.AI (AI)
On April 4, I mentioned C3.AI (NYSE:AI) – another one of the top tech stocks benefiting from Nvidia. At the time, it traded around $26 a share. Today, it’s up to $43.95, and running on Nvidia’s growth. Adding to the bullish sentiment is that Goldman Sachs (NYSE:GS) reported recently that generated AI could raise global GDP by 7% over the next ten years.
Additionally, C3 raised its outlook while also stating that it beat previous guidance numbers. The company stated that says total revenue for its fourth fiscal quarter grew from $72.1 million to $72.4 million, exceeding the company’s own guidance. C3 expects an adjusted operating loss of $23.7 million to $23.9 million, narrower than previous expectations of $24 million to $28 million. C3.AI also noted, “Overall business environment for enterprise AI is more active than we have seen since the company’s inception and seems to be accelerating” in its press release.
The company also notes that adoption of AI in its key operating segments appears to be accelerating. It reported that more clients than ever are signaling interest in using the tech to improve their business processes, and this seems like a trend that’s set to continue.
ROBO Global Artificial Intelligence ETF (THNQ)
Another one of the top tech stocks benefiting from Nvidia is the ROBO Global Artificial Intelligence ETF (NYSEARCA:THNQ). The last time we mentioned THNQ, it traded at $32 on May 24. Now, it’s up to $34.25, and running hot thanks in large part to Nvidia. This ETF invests in companies that are leading the AI revolution. Included in THNQ are companies developing the technology and infrastructure enabling AI, as well as companies that apply AI in various verticals, from business processes to e-commerce and healthcare.
With an expense ratio of 0.75%, the THNQ ETF offers exposure to Nvidia, Twilio (NYSE:TWLO), Atlassian (NASDAQ:TEAM), Splunk (NASDAQ:SPLK), Cloudflare (NYSE:NET), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and 62 other AI-related holdings.
Since the start of the year, the THNQ ETF exploded seeing a year-to-date increase of 23%. Over three years the fund has also managed to beat the market, as it returned 8.04% while the average return for funds was around 5.47%. This is a promising sign that it could continue to outperform in the future, especially a more companies adopt AI technologies.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.