TLDR:
Key points:
- AI and data stocks are outperforming big tech due to the increasing demand for data and computing power.
- Companies are capitalizing on the trend of human-generated data being used as digital fuel for AI models.
Summary of Article:
In a current market where AI and data stocks are thriving, companies like Arista Networks, Nutanix, and Vertiv are showcasing strong growth potential and outperforming big tech competitors. The demand for data and computing power is on the rise, with companies relying heavily on AI models fueled by human-generated data. These trends have led to companies increasing prices for access to APIs and expanding their market share in the data and cloud computing space.
Arista Networks, a leading provider of data-driven networking solutions, has seen a significant uptick in stock performance, benefiting from the AI and cloud computing boom. With a focus on a total addressable market in data-driven client-to-cloud AI networking, Arista is poised for continued growth, despite trading at a premium valuation.
Nutanix, offering cloud software and hyper-converged infrastructure solutions, has also experienced robust demand and growth in revenue. Despite some concerns around forward guidance, Nutanix’s strong financial performance and low valuation suggest a potential for a significant recovery in stock value.
Vertiv, a provider of critical digital infrastructure and continuity solutions, has shown strong sales and operating margins, positioning the company as a key player in the data center infrastructure market. With a recent correction in stock price, Vertiv offers an attractive entry point for investors looking to capitalize on the cloud and AI workload explosion.
Overall, these AI and data stocks present promising opportunities for investors seeking growth outside of traditional big tech companies. As the demand for data and computing power continues to grow, companies like Arista Networks, Nutanix, and Vertiv are well-positioned to outshine their competitors in the coming years.