Nvidia is not the only significant AI-related stock on Wall Street, as the AI sector encompasses data centers, energy, and more. Joe TG, portfolio manager at Rational Equity Armor Fund, joins the discussion. When considering Nvidia’s upcoming earnings, the market eagerly awaits the results, but which AI-related stocks might move most directly based on Nvidia’s performance? Joe notes that it depends on Nvidia’s reporting details and which parts of the company perform well or poorly. If the focus is on the growing demand for data centers, several companies stand to benefit. For example, Broadcom is expected to play a major role in building out data centers. Additionally, Nebius, a key Nvidia partner involved in hyperscale data centers with their Blackwell boxes, could experience stock movement depending on how many units are sold. Beyond Nvidia, there are many other companies deeply tied to the AI space whose success hinges on this ecosystem. In the energy sector, Joe highlights CEG, a company aiming to revive nuclear power plants and expand nuclear energy production. This is relevant because data centers consume massive amounts of energy, so there is a crucial ancillary play to support AI growth through energy supply.

More broadly, the AI boom is part of a larger tech recovery that has been driving the market for several years, lifting many companies alongside increasing chip sales. As data center construction contributes about 1 percentage point to GDP growth, the discussion shifts towards cloud services providers. Investors are interested in the recurring revenue streams these companies might generate from ongoing investments and AI-related services. Google is a prime example, aggressively entering this space with products like Gemini Ultra and Gemini Plus, fueling market excitement. Despite this year’s economic headwinds and global uncertainties such as tariffs, the race for AI leadership intensifies, and spending on AI is viewed as essential, not discretionary. Joe emphasizes that the urgent demand for Nvidia chips is strong, and the recurring revenue opportunity could help AI ventures become significantly profitable. Google, having initially stumbled with Bard, has corrected course and now presents strong AI capabilities with Gemini products, capturing attention for their innovation. Many companies, especially smaller ones, may be willing to invest upfront to explore AI’s potential benefits, indicating a sustained willingness to pay for these emerging services. In summary, while Nvidia’s earnings are highly anticipated, various companies tied to data centers, energy, and cloud services are integral to the AI ecosystem’s growth. The sector’s expansion is driving new investments, recurring revenue models, and critical infrastructure development, reflecting a broader tech-driven market revival.