Missed Nvidia? Buy Oracle and 2 Other Beaten-Down AI Stocks Now

The recent resurgence of the "Trump Trade" has investors buzzing about the potential impact of a Donald Trump victory in the upcoming election. As market observers note signs of increasing conviction in a Trump win, certain industry sectors and financial assets are expected to benefit from his policies of lower taxes and less regulation. One such sector is artificial intelligence (AI), where several beaten-down stocks offer meaningful upside potential.



Oracle, AMD, and Teradyne have been beaten down in the market, but they offer attractive investment opportunities. Oracle's cloud software applications, including Oracle Fusion cloud ERP, supply chain management, and human capital management, are driving its growth. AMD's x86 microprocessors and graphics processing units (GPUs) are gaining market share, while Teradyne's automated testing and industrial automation solutions are promising.



Oracle's earnings have increased by 23.10% in 2024 compared to the previous year, while AMD's earnings have grown by 122.4% over the same period. Teradyne's earnings have also seen a substantial increase, although the exact figure is not provided. Looking ahead, analysts expect Oracle's earnings to grow by 13.84% in the next year, AMD's by 5.1, and Teradyne's by 15.5%.

The earnings trends and growth expectations of these AI stocks make them attractive investment opportunities. However, it is essential to consider the potential impact of regulatory pressures and geopolitical tensions on their performance. The U.S. government's restrictions on selling advanced AI chips to China have hindered Nvidia's growth, while AMD faces similar challenges. Additionally, China's antitrust probe into Nvidia's acquisition of Mellanox highlights the geopolitical risks.

In conclusion, Oracle, AMD, and Teradyne offer meaningful upside potential in the AI sector. Their strong product offerings and market positions, combined with positive earnings trends and growth expectations, make them attractive investment opportunities. However, investors should be mindful of the potential impact of regulatory pressures and geopolitical tensions on their performance. As the market continues to evolve, careful monitoring and adaptability will be crucial for investors to benefit from ongoing market growth.